Victorian developer Pelligra Group has paid $30 million for the former Calvary Wakefield hospital in Adelaide’s CBD, with plans to transform the site into a state-of-the-art medical precinct.
Pelligra, who settled on the off-market transaction this week, is looking to bolster its growing South Australian presence and healthcare portfolio following the purchase of several other significant Adelaide sites.
The developer acquired the former Holden car assembly site in 2017, followed by the purchase of the former Salvation Army “People's Palace” at 89 Pirie Street.
Chairman Ross Pelligra acknowledged that the 9,000sq m Wakefield Hospital site holds a significant amount of history for many South Australians, and as such would be closely scrutinised by the South Australian community.
“While many developers would demolish and redevelop the multifaceted site to accommodate a high-density residential asset, this is certainly not our intention.
“Pelligra sees great value in the existing medical infrastructure and will be investing substantial capital to transform the site into a state-of-the-art health and wellness precinct in line with its historical use,” Pelligra said.
A $70 million redevelopment of the site is expected to begin early in the new year and will include an extensive refurbishment of existing facilities, new fit-outs for incoming tenants and the development of a new building on an adjacent carpark on Ifould St.
A leasing campaign will also begin to lure medical and health service providers to the site, which consists of four street frontages including Hutt Street, Wakefield Street and Ifould Street.
Pelligra anticipates that parts of the facility will be open in early 2021.
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Meanwhile, a 10-year Federal Government lease on a development parcel in Australia's premier naval precinct is set to attract interest from domestic and international investors, with price expectations understood to be around $45 million.
Branded the Centre of Defence, the 2.5-hectare asset in the Osborne Naval Shipyard at 620-628 Mersey Road incorporates two campus-style office buildings providing a net lettable area of 8,006 square metres.
Also included is 3,000sq m of vacant land, earmarked for the development of two additional office buildings totalling 6,000 square metres.
The site is fully leased to a commonwealth government business entity, Australian Naval Infrastructure, from July 2020 on a new 10-year lease with options.
CBRE’s Ian Thomas and Alistair Laycock along with Knight Frank’s Guy Bennett and Oliver Totani are responsible for the International Expressions of Interest campaign on behalf of the owner, Prime Space Projects.
“620 Mersey Road is situated at the epicentre of the state’s defence precinct, which is earmarked for over $90 billion in spending across multiple projects in the next three decades,” Thomas said.
“This will be a key drawcard for purchasers, particularly in light of the property’s long-term government lease and future development potential.”
With the abolition of stamp duty in South Australia continuing to drive new investment in the state, Thomas said this would help fuel buyer interest.
Knight Frank’s Bennett said the ability to secure a ten-year income stream linked to a commonwealth government-owned tenant was a rarity anywhere in Australia.
“This is a true defensive grade investment which offers further development upside, and we expect it to be highly sought after,” Bennett said.