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OtherRenee McKeownThu 23 Nov 23

Healthcare: Lead or Get Out of the Way, says Northwest

The podium and entrance of Northwest Australia's RDX, Lumina, view of internal atrium

Healthcare real estate is only proving its worth to those with sector know-how as investors and operators feel the squeeze.

While profits for health insurers doubled in the 2023 financial year to $2.2 billion, the percentage of private hospitals that made a profit was far less—just a third in 2022.

Yet competition between real estate investment trusts and private capital seeking diversification away from office and retail continues to increase. 

One of those staying on top despite these challenging conditions is Northwest Australia with $6 billion in assets under management and expansion on the horizon. 

The healthcare heavyweight has a $3.1-billion development pipeline and is listed on New Zealand’s Exchange and the Toronto Stock Exchange.

Northwest senior vice-president precincts Alex Belcastro will be uncovering growth strategies as part of a panel discussion at The Urban Developer’s Healthcare Real Estate vSummit on Thursday, November 30.

In her role, Belcastro focuses on healthcare precincts, from planning development, capital transactions and to leasing as well as research and strategy.

Northwest RDX exterior at night shows a multi-storey curved building on the Gold Coast.
▲ Northwest’s RDX Lumina at the Gold Coast Health and Knowledge Precinct is a cutting-edge research, innovation and life sciences building.

“It’s a tough time at the moment but it is a defensive sector with expenditure from government and insurers, so we are very lucky with that,” Belcastro said.

“The key characteristics of advantage in this kind of market is that you’ve got to be market leading, specialised, you have to have unmatched sector expertise.

 “You’ve got to be backed by a stable embedded earnings growth so you’ve got the confidence to do the right developments.

“I think because Northwest is so strong and established in terms of our tenant operator pool and we’ve got really high occupancy rates across our portfolios.

“We are looking at a very targeted high-quality development pipeline.”

Northwest partnered with Campbelltown City Council and GenesisCare to develop a 2.8ha site near Campbelltown Public Hospital.

render of a four plus-storey white health care building surrounded by trees and with a modern facade in Campbelltown.
▲ A render of Northwest’s Macarthur Health Precinct Stage 2.

The first stage is expected to be completed early next year and featues a comprehensive cancer centre while planning is under way for stage two with short stay and other services.

And construction of Northwest’s RDX Lumina within the Gold Coast Health and Knowledge Precinct has started.

That project is expected to be completed by mid-2025 and has attracted notable tenants including Philips Healthcare and Sonic Healthcare. 



The Urban Developer
Healthcare Real Estate vSummit will take place virtually on Thursday, November 30. Click here to register and find out more. 

OtherRetailOfficeLife SciencesHealthcareAustraliaGold CoastPlanningReal EstatePlanningSector
AUTHOR
Renee McKeown
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Article originally posted at: https://www.theurbandeveloper.com/articles/northwest-heathcare-real-estate