Entire Kew hospital up for grabs

A former Kew hospital could operate again, after its vacant site hit the market with price expectations of more than $8 million.

But hospital operators will have to fend off developers looking to transform the building into apartments. 

The Cotham Private Hospital opened in 1970 and was a 60-bed facility run by healthcare operator Healthscope.

Commercial Insights: Subscribe to receive the latest news and updates

It closed in June, alongside the Geelong Private Hospital, with their operator stating it was no longer viable to continue running the two hospitals.

Now, the 2245sqm site at 209 Cotham Rd is for sale offering four operating theatres, consulting suites, a day procedure area and 31 car spaces.

CBRE agent Sandro Peluso says hospitals generally chang hands in off-market sales in which real estate investment trust (REIT) funds purchase them from one another.

The hospital closed in June and now is priced to fetch more than $8 million.

But this time around, the on-market sale opens up further development opportunities for the property.

“The best use would be for it to continue as a hospital, as the existing improvements are so valuable. But developers are considering converting it into residential properties,” Peluso says.

“We expect the offering to draw attention from a number of … investors, developers and local and international REITs.

“The property’s location and value-add potential makes it one of 2018’s best medical offerings.”

Peluso says the hospital has already caught the eye of developers looking to convert the four-storey building into apartments.

“Kew’s strong underlying land value, with a median house price of $2.71 million, and the area’s surrounding amenities, inclusive of Kew’s notorious ‘private school belt’, should be highly appealing to prospective buyers,” he says.

The hospital is listed via CBRE in conjunction with Magree Property Advisory. Offers close on November 22.

This article from Leader Newspapers originally appeared as “Kew’s former Cotham Private Hospital hits the market after shutting down in June”.