Pelligra Group has paid Cromwell $30 million for Adelaide’s recently vacated Calvary Wakefield Hospital, with plans to fit it out as a state of the art health and medical precinct.
The 8712 square metre holding at 264-300 Wakefield Street, adjacent to Rymill Park, cost the vendor $50m in 2017.
With four street frontages, it contains a substantial car park and about 15,852 square metres of improvements including a 180 bed hospital, theatre rooms, consulting suites, conference areas and offices.
Some of the buildings were constructed in the late 1880s.
This year, the federal government temporarily leased the property for a COVID-19 testing centre.
It exchanged with vacant possession.
History will be retained
Pelligra chairman Ross Pelligra said he acknowledges the asset holds a significant amount of history for many South Australians.
“There is great value in the existing medical infrastructure and the group will be investing substantial capital to transform the site…in line with its historic use”, he added.
The redevelopment value has been put at $70m.
Parts of the facility are expected to be re-opened early next year (story continues below).
Their listing comes two months after Renewal SA sought a development partner for a 35,000 sqm office on part of the ex-Royal Adelaide Hospital, three blocks away, which is earmarked to become an innovation hub.
Site suits aged care too: agents
“Calvary Wakefield Hospital will appeal to a broad market but particularly healthcare and aged care, with interested parties looking to repurpose or reposition the assets for ongoing use,” Mr Twelftree said.
“The facility forms part of a well-established, mixed-use precinct that includes numerous medical centres, specialists and clinics – including retail, food and beverage, entertainment and high quality residential apartments”.
Minimal work would be required to convert part or all of the [Wakefield St] building to a residential aged care facility or similar, the agent added.
“In terms of location, if the property was…repurposed into an aged care facility, the hospital’s…proximity to Adelaide Hospital makes a strategic landholding that gives near immediate access to key health services for the elderly – a consideration that is now more important than ever,” Mr Twelftree said.
According to Mr Peluso the South Australian capital has “the track record, capability and ambition to continue its global leadership in the development and scaling of distinctive medical technologies”.
“Global health companies are now choosing Adelaide as their destination for research and development, with companies able to access up to 43.5 per cent cashback for cashback for clinical trials, analytics, study, drug manufacture and prototype manufacture,” he added.
“With the new $345m Calvary Hospital only c200m away, this will attract healthcare groups to the area, as being in close proximity to private and public hospitals is key for foot traffic and referrals”.