Legal wrangling stalls Weststate Private Hospital’s construction progress

Weststate Private Hospital was meant to be completed last year but progress on construction is stuck in a holding pattern with no end in sight. Find out why.

Construction material was piled and water pooled at the site of the Weststate Private Hospital on Thursday. Picture: Leighton Smith.

There is no end in sight for the construction of Townsville’s long-awaited Weststate Private Hospital, which is caught in a holding pattern while two legal battles play out in Brisbane’s Supreme Court.

Questions had begun to be asked in the community about the apparent lack of progress towards finishing off the hospital, which was previously expected to be complete by mid-2024.

Led by development partners Geon Property and Centuria Healthcare, the $60.5m hospital project was being built by Queensland-based construction company Woollam Constructions, who broke ground in February 2022.

Positioned on the corner of Sturt Street and Ingham Road, the hospital redeveloped the heritage-listed former Townsville West State School and attached it to a five storey building.

The new building was to include four operating theatres, procedure room, consulting rooms, four bed high-dependency/ intensive care unit, 23-hour care facility with 19 beds, 26 overnight rooms, cafe and 24/7 kitchen.

View of the future Weststate Private Hospital from Obrien St. Picture: Leighton Smith.

When visited on Thursday, there were a few tradie vehicles on-site with limited construction activity visible, with Woollam’s staff, both on and off-site, declining to comment.

While happy to discuss their other Townsville projects, Geon Property CEO Ben Griffin was unable to provide any details on the hospital, citing legal proceedings currently underway.

Geon Property CEO Ben Griffin could not provide any construction updates about the Weststate Private Hospital. Picture: Supplied.

The Brisbane Supreme Court has two concurrent matters playing out involving owners Weststate Private Hospital Limited (WPHL) as the plaintiff.

In one matter, WPHL launched a civil claim for damages in February 2024 against Centuria Capital, Centuria Healthcare Pty Ltd, Benjamin Powell Griffin, Grant Anthony McOmish, and Lautaret Pty Ltd – a joint venture company within the Geon Property Group.

According to Queensland Courts, the Supreme Court was responsible for resolving money disputes for any amount over $750,000.

The interior of the Weststate Private Hospital looked far from complete on Thursday. Picture: Leighton Smith.

The other matter saw WPHL launch a “Claim-Contract-Real Property” proceeding against Centuria Healthcare Property Fund (CHPF) South Bunbury Pty Ltd in February 2022.

It’s understood both civil claims are being contested over the specifics of the building’s design and construction.

All defendants involved in both matters have filed notices of their intent to defend against the claims, with legal matters still undergoing in both proceedings.

CHPF, which holds an investment in the development of Weststate Private Hospital, provided more details in its quarterly update for December 2024.

“WPHL has issued proceedings against the manager alleging claims under the Australian consumer law and alleging certain building works in respect of the hospital do not comply with the agreement for lease (both in terms of what is required and who is responsible for the cost),” CHPF said.

The former Townsville West State School will be revitalised during the construction of the Weststate Private Hospital. Picture: Leighton Smith.

Weststate Private Hospital’s 2022 groundbreaking event with Geon Property's Ben Griffin, Woollams Constructions' George Bogiatzis, Centuria's Andre Bali and Weststate Private Hospital Limited's Dr McEwen. Picture: Supplied.

“WPHL seeks relief including a declaration that the agreement for lease has been repudiated by the fund manager, a declaration that the agreement for lease is not valid or enforceable or an order avoiding the agreement for lease.

“WPHL claims damages in the proceedings (being alleged lost profits and costs incurred by it to date). WPHL also claims interest and costs. The proceedings are being defended.”

View from Ingham Rd of the future Weststate Private Hospital. Picture: Leighton Smith.

The cases were listed for review on March 21.

It is understood that once the legal matters were finalised, details would be provided to the Townsville community about the future of the hospital.

Originally published as Legal wrangling stalls Weststate Private Hospital’s construction progress