Plans for a $350-million private hospital in Gosford have been given the green light after a lengthy application process.
The hospital, recognised as a state significant development, will be delivered by AA Crown Holdings in collaboration with Northside Group, which is developers Commercial HQ and the Gibbens Group.
Northside Group purchased the 3.1ha site on Racecourse Road in late 2018.
The 11-storey and five-storey development will be built over two stages with construction expected to begin in mid 2022 and completed by 2025.
The project’s first stage will be in-patient units, general practitioner clinics, radiology rooms, pathology room, intensive care unit, operating theatres and ancillary retail. It will provide 238 hospital beds.
The second stage will be an ancillary five-storey building to be used for retail and medical tenancies.
The development will create 2200 jobs during its construction phase and 460 permanent jobs upon its completion.
“We had a vision for a medical precinct close to the existing public hospital,” Commercial HQ managing director Tim Gunasinghe said.
“There is a growing demand for medical facilities on the Central Coast with continued population growth.”
The project hit a hurdle in 2018 when Central Coast councillors voted to refuse all state significant developments in Gosford.
The decision resulted in an extended approval process through the Independent Planning Commission (IPC), which led to the NSW Planning Department’s close involvement with the application, the applicant and the subsequent approval.
Healthcare property has become a sought-after asset class on the back of demographic trends including Australia’s ageing population.
Throughout the pandemic, healthcare property, as well as industrial property, has shown its resilience due to the essential services nature of many of its tenants and the long-term leases that underpin valuations and income flows.
As well, government support for further privatisation of many medical services and the growth of employment in the sector has made healthcare property attractive to investors pivoting their portfolios away from office and retail property.
A recent report by JLL forecast yields on sought-after alternative asset classes, particularly healthcare real estate such as private hospitals and medical centres, are expected to fall to record lows over the next 12 months due to heightened investor interest.
Despite this, JLL estimates the value of real estate in the healthcare sector at $95 billion to $105 billion, providing plenty of scope for investments of scale.