NorthWest, GIC tip $2.4b into healthcare fund

NorthWest’s proposed development beside Epworth Geelong.

Toronto listed NorthWest Healthcare Properties with Singapore sovereign wealth fund GIC will invest another $2.4 billion into a healthcare joint venture established four years ago.

Following the agreement, the NorthWest Healthcare Properties REIT will have a c$6.2b commitment.

It presently holds 20 assets worth more than $3b.

On top of this, the trust has a development pipeline with end product valued at over $3b.

“This existing portfolio comprises hospitals, medical centres, ambulatory facilities, aged care facilities and health precincts,” a NorthWest statement said.

“The development pipeline currently has 10 projects under construction,” it added.

“To continue the successful partnership, the REIT and GIC reached agreement to expand the partnership commitment by around 65 per cent, with the additional commitment…to be funded through debt and equity”.

The agreement comes a day after Centuria and Morgan Stanley announced plans to create a healthcare fund seeded with three east coast hospitals.

Australian Unity and Dexus also recently established a partnership for these kind of assets though each own substantial essential services product independently (story continues below).

Set for further growth

Specialising in large hospital and life sciences precincts near complementary medical services, NorthWest is Australia and New Zealand’s largest manager and developer of healthcare real estate; its portfolio in the region grew 33pc in the 12 months to December, 2021.

“A major focus for NorthWest is on creating large-scale healthcare precincts that deliver a range of critical health services to local communities, such as the recent expansion of our partnership with Epworth to activate its [Waurn Ponds] Geelong and Richmond precincts,” NorthWest Australia and New Zealand president and chief executive officer, Craig Mitchell, said.

“Through our $3b development pipeline…we will continue to focus on servicing demand in areas of population growth, or where there is material underservicing of critical facilities to local communities across Australia,” he added.

Last month NorthWest, through its New Zealand listed Vital Healthcare Property Trust, announced it would team with the Campbelltown City Council to deliver a 2.8 hectare, c$76.6 million medical hub, beginning with a four storey cancer centre and research hub (artist’s impression, top).

In November, the group began constructing the balance of its Playford health precinct at Adelaide’s Elizabeth Vale.

Worth $165m, this project includes several buildings with spaces pre-committed by, amongst other medical service providers, Genesis Care, Radiology SA and Clinpath. A $93m hospital with eight theatres and 120 beds will be operated by Calvary Health Care.

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Marc Pallisco

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