Property Development

Residential developer snares former Cotham Private Hospital in Kew

Written by The ReReport
As seen in the Source link, written by on 2018-12-14 16:39:16

The former Cotham Private Hospital in Kew may soon be an apartment complex.

An empty Kew hospital that ceased operating in June could soon face the wrecking ball to make way for apartments.

The former Cotham Private Hospital
site was snared by Hamton Property Group for a price understood to be close to the $15 million mark.

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Private healthcare operator Healthscope listed the prominent Cotham Rd site in September and received eight offers from a range of developers, medical groups and aged-care developers.

But no one could outbid high-end property developer Hamton.

“We are excited about the opportunity to develop a boutique residential project for owner-occupiers in this premium location,” said Hamton Executive Chairman Paul Hameister.

“We are looking forward to adding value to the local area with our considered and very high quality approach to development.”

The empty hospital was snapped up by property developer Hamton for about $15 million.

CBRE director Sandro Peluso anticipated apartments would one day replace the hospital with high demand from owner occupiers for the end product across the City of Boroondara.

“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,” Mr Peluso told Leader when the property hit the market.

“The interest in healthcare real estate has increased markedly over the past three years, with government support and demographic trends boding well for the asset class.”

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

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

The 2245sq m site at 209 Cotham Rd offered four operating theatres, consulting suites, a day procedure area and 31 car spaces.

Kew’s median unit price has increased 20.4 per cent in five years to a $722,500 median, according to CoreLogic.

The blue-chip ‘burb’s median house price is also up 27.3 per cent to a $2.16 million median.

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