Epworth Eastern Hospital1 Arnold Street, Box Hill
Epworth Eastern Hospital is located in Box Hill, a significant regional hub for the middle and outer eastern suburbs.
Vital has entered into an agreement to lease with Epworth HealthCare to build a new 14 storey tower, interconnected with the Fund’s Epworth Eastern Hospital, Epworth committed to lease approximately 80% of the new Tower. This project will add an additional five operating theatres, 63 beds, an emergency department and six levels of specialist consulting suites. Icon Construction have been appointed as builder and construction is underway. Expected completion is early 2022.
Vital and Epworth have agreed to reset Epworth’s lease term for the existing hospital and their area within the new building to a new 30-year lease term, with annual rental reviews based on the greater of 3% or CPI.
We have strong expressions of interest from medical practitioners for the remaining 20% of the building at market rental rates. When complete the overall campus will have 286 inpatient beds, 15 operating theatres, an emergency department, radiotherapy and significant onsite doctor consulting suite accommodation.
Development SummaryAs at 31 March 2021 Epworth Eastern Hospital 1 Arnold Street, Box Hill
$126.2m AUD Development Cost
Early 2022 Forecast Completion Date
|Spend to Date||$68.4m AUD|
|Cost to Complete||$55.0m AUD|
|Forecast Income Return||5.95% (gross yield)|