NorthWest, Epworth strike three property deals

One of the buildings at Richmond’s Epworth Elim is set to be extended three floors.

Epworth Healthcare has sold a Richmond rehabilitation clinic and a half stake in its Waurn Ponds hospital to NorthWest Healthcare REIT.

Epworth Geelong, in Waurn Ponds, was completed in late 2016.

The Melbourne complex, the Epworth Elim at 29 Erin Street, is trading for $22.8 million.

The buyer is expected to tip in another $5m for air rights on one of the building so as to allow for an extension which Epworth will occupy.

Another property on this block – named Elim when it was owned by the Salvation Army – is, according to Heritage Victoria, the suburb’s only intact 19th century mansion.

Meanwhile in Waurn Ponds, NorthWest is paying $89.8m for a 50 per cent interest in the Epworth Geelong.

Both assets are exchanging with 20 year leasebacks.

Similar long-term arrangements between the pair are in place at Epworth Freemasons, in East Melbourne, Epworth Camberwell and Box Hill’s Epworth Eastern.

Third site earmarked for healthcare precinct

In a third deal announced today, Epworth is selling NorthWest a half share interest in 4.2 hectares of land – on each side of Epworth Geelong – for $15m.

On it, the buyer is intending to create a $600m innovation, education and healthcare precinct (story continues below).

NorthWest is intending about 100,000 square metres of product around Epworth Geelong (centre).

A childcare complex, multi-storey aged care facility and retail is also mooted.

To be developed in stages, the project (artist’s impression, top) is anticipated to accommodate some 100,000 square metres of product.

“This is an exciting series of transactions for NorthWest, creating a broader and deeper partnership for Epworth HealthCare, to support the delivery of health services for all Victorians,” NorthWest president and chief executive, Craig Mitchell, said.

“All three transactions play to our core expertise, strengthening our relationship with Epworth and unlocking an exciting pipeline of new health infrastructure at two major new precincts,” according to the executive.

Epworth chief executive, Dr Lachlan Henderson, added the deals allow it to focus on growth and develop its digital program.

“Importantly, our patient services will continue as normal,” he said.

The sale comes three months since HomeCo paid Genesis Healthcare $103m for eight oncology centres, with leasebacks.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of