New $600m healthcare precinct planned for Epworth Geelong site

Plans for a new $600m innovation, education and health precinct in Waurn Ponds have been revealed.

Plans for a new $600m innovation, education and healthcare precinct in Waurn Ponds have been revealed.

Epworth HealthCare and NorthWest Healthcare Properties REIT have signed new property agreements, with Epworth agreeing to the partial sale and leaseback of the Epworth Geelong building and adjacent land.

Similar long-term arrangements with NorthWest are already in place at several Epworth sites in Melbourne.

The major new strategic initiative is set to deliver a state-of-the-art innovation, education and healthcare precinct in Geelong.

The announcement involves the sale by Epworth to NorthWest of 50 per cent interest in Epworth Geelong in Waurn Ponds for $89.8m and 50 per cent interest in about 4.2ha of adjacent development land at Epworth Geelong for $15m and a commitment to create an integrated innovation, education and healthcare precinct.

Dr Lachlan Henderson, Group Chief Executive, Epworth HealthCare & Leonie Lloyd, Executive General Manager, Epworth Geelong. Picture: David Smith

With a development envelope of about 100,000 sqm of gross floor area, across multiple stages over a 10-plus year period, the estimated total development cost is about $600m.

With about 4.2ha of land available for development at Epworth Geelong, NorthWest and Epworth will now prepare a multi-staged masterplan for future development of the site.

Their vision is to create a leading health and education precinct bringing together health services, researchers, technology, and industry partners into one precinct.

The site’s co-location with Deakin University’s Waurn Ponds Campus also offers extensive partnership, research and collaboration opportunities.

President and chief executive of Australia and New Zealand for NorthWest Craig Mitchell said the opportunity of the Epworth Geelong site aligned closely to NorthWest’s investment and development principles – providing the opportunity to develop a precinct that will enable the delivery of world-class healthcare services, innovation and education to Geelong and its surrounds.

Initial concept design for the healthcare precinct.

Key areas of focus will include allied health and rehabilitation, medical research, industry partners and emerging technologies, aged care and retirement, childcare and health education among others.

Epworth Group chief executive Dr Lachlan Henderson said the agreement freed up capital, supporting long-term sustainability for Epworth.

“The agreement enables Epworth to focus on targeted growth, our ambitious digital program and innovation to deliver better outcomes for our patients, now and in the future,” Dr Henderson said.

“Importantly, our patient services will continue as normal.

“The strategic alliance with long term partner NorthWest means Epworth can further its vision of creating a health precinct in Geelong.”

NorthWest Healthcare Properties is a specialist healthcare real estate asset investor, manager and developer in Australia and New Zealand (ANZ), with about $5.5 billion of assets under management in ANZ.

NorthWest ANZ is part of NorthWest Healthcare Properties REIT, a Toronto-listed global real estate investment trust.

Originally published as New $600m healthcare precinct planned for Epworth Geelong site