NorthWest Healthcare has announced a $127.6 million transaction between them and Epworth HealthCare that will see a new state of-the-art innovation, education and healthcare precinct implemented in Geelong, as well as expanded facilities at the site where Epworth Richmond is located in inner-Melbourne.
The two parties confirmed the sale by Epworth to NorthWest for a number of sites, including 50 percent interest in Epworth Geelong in Waurn Ponds for $89.8 million, 50 percent interest in 4.2ha of adjacent development land at Epworth Geelong for $15 million and a commitment to create an integrated innovation, education and healthcare precinct, with 100 percent interest in the Epworth ELIM site in Richmond for $22.8 million, with a further $5 million option for the air-rights to further develop the site.
NorthWest specialises in the ownership and development of market-leading hospital, health, and life sciences infrastructure and precincts. NorthWest’s Australia and New Zealand CEO, Craig Mitchell, says he is excited to begin transforming health infrastructure in Victoria.
“This is an exciting series of transactions for NorthWest creating a broader and deeper partnership with Epworth HealthCare, to support the delivery of health services for all Victorians,” he says.
“All three transactions play to our core expertise, strengthening our relationship with Epworth, and unlocking an exciting pipeline of new health infrastructure at two major new precincts.
“We look forward to bringing together the best experts in healthcare planning and infrastructure to
deliver world-class facilities on each site.”
Lachlan Henderson, Epworth Group’s Chief Executive, says the agreement frees up capital and as a result will support long term sustainability for Epworth.
“The agreement enables Epworth to focus on targeted growth, our ambitious digital program and innovation to deliver better outcomes for our patients, now and in the future,” he says.
“Importantly, our patient services will continue as normal. The strategic alliance with long term partner NorthWest means Epworth can further its vision of creating a health precinct in Geelong and develop the precinct in Richmond for the benefit of our community.
“Our vision, Epworth 2025, underpinned by our new strategic plan, transformation projects and this partnership, ensures we remain focused on delivering exceptional evidence-based care for all Victorians.”
The Geelong Innovation, Education and Healthcare Precinct will be developed across multiple stages over a 10+ year period. It is estimated the project will cost approximately $600 million. Catering for one of Melbourne’s largest growth corridors, the project possesses a development envelope of approximately 100,000sqm.
NorthWest and Epworth will now prepare a multi-staged masterplan for future development of the site, aiming to create a leading health and education precinct bringing together health services, researchers, technology, and industry partners into one ecosystem. Key areas of focus will include allied health and rehabilitation, medical research, industry partners and emerging technologies, aged care and retirement, childcare and health education among others
The Epworth ELIM site in Richmond has potential development of 5,000 sqm of gross floor area with total project cost of approximately $23 million. Expansion opportunities across the site will be considered in line with the strategic vision set by Epworth and NorthWest and considered in conjunction with Epworth Richmond which has been providing healthcare services to the greater Melbourne area for more than 100 years. The expansion will be undertaken in conjunction with industry experts John Wardle Architects, Urbis town planning and Heritage consultants Lovell Chen.
