NorthWest has a separate investment partnership with New Zealand-listed Vital Healthcare Property Trust, and that partnership last month acquired a 27,840m² site in Campbelltown, Sydney’s south-west, for 76, $6 million. It will develop a health center in partnership with the town hall.
In a growing specialty sector that has also attracted local investors such as ASX-listed Dexus, Centuria and HomeCo, NorthWest is focused on a healthcare model, more advanced in the US than in Australia, based on the combination of universities, public and private establishments in a single enclosure.
“A lot of infrastructure is built with unis,” Mitchell said.
“There are many more health centers to be created, whether it is mental health, acute hospitals or rehabilitation.”
NorthWest’s assets under management in the ANZ region have increased by 33% over the last 12 months.
This joint venture with GIC, which now has more than 20 healthcare real estate assets across the country with over $3 billion invested, currently has 10 projects under construction.
The joint venture was also looking to kick off construction of new projects, such as a $150 million tower at Parklands in the Gold Coast – on the site of the 2018 Commonwealth Games village which would also share facilities with Griffith University and hospitals public and private Gold Coast. – later this year, Mr. Mitchell said.
Demand for health services — especially mental health — had been accelerated by the pandemic, but the growth was a permanent change, he said.
“The way we think about research, the way we interact with the healthcare system — we have an aging population and a growing population anyway — all of those things make it more structural than cyclical,” Mr. Mitchell.
In a partnership with Epworth Healthcare, NorthWest is planning a $600 million innovation, education and healthcare district in Geelong, Victoria’s second largest city.
NorthWest will take a half stake, alongside the hospital operator, in a 4.2 hectare plot next to the existing Epworth facility, where the pair aim to build 100,000 sq m of property over the next next decade.
The investor also bought one of Epworth’s Richmond properties in Melbourne’s city center for $22.8m, with an additional $5m option for air rights to further develop the website.