Gosford Private Hospital has been sold for $200m to Barwon Investment Partners (Barwon), with former owner, Healthe Care Australia, to continue to operate the hospital on a long term 25 year lease arrangement, with options for up to a further 75 years.

The transaction will facilitate further investment and material expansion of the hospital, with plans for a $32m redevelopment to ultimately deliver 12 theatres, additional beds, an expanded day surgery unit/recovery chairs, a new maternity ward and more, to meet the growing demands of the community, already approved.

The redevelopment of Gosford Private is an exciting opportunity for our staff, doctors and the community, hospital CEO, Matt Kelly, said. Having additional theatres, beds, a new purpose built maternity ward and additional car parking allows us to continue to service our community with world-class facilities and a patient experience to match. Barwon Founding Partner, Robert Morrison, said the group was pleased to announce the acquisition, which will be a strong addition to the Barwon Institutional Healthcare Property Fund.

Our institutional investors are seeking exposure to the recurrent income and growth opportunities in the healthcare property sector and this investment will further improve the quality and diversification of our portfolio, Morrison said.

Barwon Partner and Head of Healthcare Property, Tom Patrick, said the hospital represented a key component of the healthcare infrastructure in the fast-growing Gosford region. The site is expansive, and lends itself to future brownfield development opportunities, Patrick said.

We will be working closely with Healthe Care to expand and upgrade this important hospital facility, to better serve the Gosford community. Healthe Care CEO, Steve Atkins, said the sale secured Healthe Cares future commitment to invest and grow Gosford Private to meet the needs of the community. Having Barwon as our property partner in this growth is an exciting opportunity for all involved, Atkins said. Gosford Private was one of our first hospital acquisitions, and the only asset across our portfolio of 34 healthcare facilities that we own.

First and foremost, we are a hospital operator, so this transaction allows Barwon to manage the asset, while Healthe Care focuses on providing clinical best practice, innovation in service delivery and positive patient outcomes, as we’ve done since 2005. The hospital has 129 inpatient beds, 74 treatment stations, 9 operating theatres, 2 cardiac catherisation labs and 2 endoscopy procedure rooms.