$35m Million Mental Health Hospital to Transform Adelaide CBD

Adelaide’s CBD is set for a seismic shift with the announcement of a $35 million private mental health hospital that will anchor the redevelopment of the iconic Wakefield Street precinct.

In what is being hailed as a game-changer for the city’s property and healthcare sectors, Avive Health will bring 60 private mental health beds, cutting-edge therapy spaces, and onsite psychiatrist suites to the heart of the city – a move that promises to revitalise the area and meet surging demand for premium health services.

The new Avive Clinic Adelaide will be the centrepiece of Pelligra Group’s ambitious transformation of the former Calvary Hospital site into a world-class mixed-use health precinct.

Construction is set to begin in October, with the facility expected to open its doors in early 2027.

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Artist impression of Avive Clinic Adelaide to be located within Pelligra’s redeveloped, mixed-use health precinct at 272–300 Wakefield Street.

This marks Avive Health’s first South Australian venture and its third private mental health hospital nationally, following successful launches in Brisbane and the Mornington Peninsula. Avive Health Co-CEO Mark Sweeney said the Adelaide expansion is a direct response to the city’s urgent need for high-quality mental health services.

“There is a critical shortage of accessible, best-in-class mental health care in Adelaide,” Mr Sweeney said.

“This hospital will not only give patients genuine choice in recovery but will also provide streamlined access to psychiatrists in an environment designed to promote healing and wellbeing.”

A property powerhouse in the making

The development is already being touted as a catalyst for Adelaide’s property market, with the Wakefield Street precinct emerging as a hotspot for health-focused real estate.

Pelligra Group Chairman Ross Pelligra said the project underscores the growing demand for premium healthcare infrastructure in South Australia.

“Our commitment to Adelaide is unwavering, and this project is another example of our belief in the city’s potential,” Mr Pelligra said.

“Avive Health’s arrival will not only fill a critical gap in mental health services but will also activate the surrounding precinct, where vacancy rates are already at historic lows.”

The new centre will offer a variety of services.

The precinct, which has already secured tenants such as Breast Screen SA, GP clinics, and allied health providers, is set to become a benchmark for integrated health developments. CBRE’s Australian Healthcare and Social Infrastructure team, which brokered Avive’s precommitment, said the site’s central location and premium facilities are driving unprecedented demand.

“Healthcare operators are lining up to be part of this precinct,” said CBRE Director Marcello Caspani-Muto.

“Avive’s commitment will only accelerate this momentum, solidifying Wakefield Street as Adelaide’s premier health hub.”

Redefining urban redevelopment in Adelaide

The Wakefield Street project is part of a broader trend reshaping Adelaide’s urban landscape, with mixed-use health precincts leading the charge in property innovation.

Avive’s new hospital will feature cutting-edge design principles, including circadian lighting, tranquil communal spaces, and wellness-focused amenities such as a TechnoGym-equipped fitness studio.

Avive’s holistic care model will address a range of mental health conditions, including mood disorders, trauma, and substance use, through tailored recovery plans that integrate nutrition, exercise, and sleep hygiene.

As construction gears up to begin next month, the Wakefield Street precinct is poised to become a flagship for health-driven property development, delivering economic, social, and community benefits to South Australia.