Real Asset Management Group (RAM) is pleased to announce its acquisition of Eden Private Hospital in Cooroy, close to Noosa, QLD. The Hospital, previously owned by New Zealand-based Vital Healthcare Property Trust, was purchased for $28.5 million and the transaction was finalised on June 15th, 2023.
The Hospital is entirely leased to Aurora Healthcare, one of Australia’s leading private healthcare providers.
This strategic investment taps into local demographic shifts, particularly the growing number of retirees choosing to settle in the picturesque region. Nearly 60% of the population of neighbouring Noosa is over the age of 45, notably higher than the national average of 40%. The Sunshine Coast is witnessing robust population growth in general, expected to 500,000 (from the current 300,000) by 2041 as a result of migration.
Eden Private Hospital holds a dominant position in the local healthcare landscape. It is the largest rehabilitation facility in Queensland, and there are no other hospitals in in the local area. The only other facility nearby is Noosa Hospital; while there are plans for a second hospital in Noosa, these are still in the proposal stage and have yet to be granted development approval.
Development approval for a 26-bed expansion at Eden has been secured, which will contribute to the ongoing refurbishment and upgrade of the facility. The most recent additions, completed in 2021, included a mental health centre. An allied health building adjoins the Hospital, housing a GP surgery, pathology collection centre, audiology centre, as well as psychologist’s and radiologist’s rooms.
The proposed expansion will occur over an underutilised portion of the site providing continuity of trade and services for the Hospital. RAM Executive Director and Head of Real Estate, Matthew Strotton, said: “RAM currently holds $1.6 billion of real estate across retail, healthcare and office assets. Our aim is to acquire up to$1 billion of new assets over the next 12 months, with a significant focus on healthcare assets. We believe that the market has undervalued healthcare assets by lumping them together with other commercial property assets like office blocks. Demographic and economic trends are supporting the value of healthcare properties more and more, presenting growth potential that has yet to be appreciated by the market.”