Hamton snares Healthscope’s Cotham Private Hospital site in Kew
The former Cotham Private Hospital in Kew has been earmarked for a significant residential development following its sale to prominent local developer Hamton.
Private healthcare operator Healthscope listed the prominent Cotham Road site for sale following the hospital’s recent closure.
CBRE’s Sandro Peluso, Julian White, Josh Twelftree and Jimmy Tat negotiated the deal with Hamton in conjunction with transaction manager Dan Magree of Magree Property Advisory.
Mr Peluso said the highly competitive campaign had resulted in one of the most notable healthcare property transactions of 2018.
The 2,245sqm corner site features 86 metres of frontage to both Cotham Road and Adeney Avenue. The existing hospital improvements include four operating theatres, 60 beds and consulting suites.
Eight Expressions of Interest were received from a range of residential developers, medical users and aged care developers.
“The interest in healthcare real estate has increased markedly over the past three years, with government support and demographic trends boding well for the asset class,” Mr Peluso said.
“With 22% of Australia’s population forecast to be over the age of 65 by 2056, investors are demonstrating a clear interest in these offerings. Given the limited supply of hospital investments made available to the market, the Cotham site presented a significant opportunity for larger medical groups.”
However, despite the level of medical-related interest, the 2,245sqm site was snapped up by Hamton in its latest development foray.
It adds to the group’s existing ventures, including its involvement in the six-year, $2 billion transformation of Moonee Valley Racing Club.
“Over the past 13 years, Hamton has built a reputation as a Melbourne market leader for entrepreneurial, high quality property developments with an end value of between $50 million and $2 billion,” Hamton Managing Director, Matt Malseed, said.
“Our focus is the high and medium density residential sector in quality locations in Melbourne’s inner and middle ring suburbs, with completed and current projects totalling more than $3.5 billion.”
These include its $420 million Eden, Haven & Sanctuary development at Abbotsford, which won the 2016 UDIA awards for best high-density development and best master-planned development in Victoria.
CBRE’s Julian White noted that the Kew sale was a clear sign of market confidence from multiple buyer segments, particularly given that the site was sold with sold with vacant possession.
“While this can typically be a challenge when securing funding from the major banks, the deal highlights that experienced and long-term developers and investors have identified that now is a great time to buy,” Mr White said.