Royston Hospital500 Southland Road, Hastings
Royston Hospital is a single-level hospital facility and two-level consulting centre, located in the city of Hastings. Royston is the only private hospital in Hastings and one of two hospitals in the Hawke’s Bay region serving 160,000 residents. Originally constructed in 1931, the facility had undergone major upgrades as recently as 2005 and contains five operating theatres and one endoscopy procedure room.
Vital has committed to a development which will result in an extension of the existing hospital into adjacent properties and include reconfiguration of patient admission and recovery areas, expansion of medical imaging and the construction of two new inpatient operating theatre shells for future expansion. The project is significantly progressed and due for completion in early 2021.
A new stand-alone Orthopaedic Day Surgery Unit will also be constructed with one operating theatre initially and provision for an additional theatre to be commissioned at a later date. This will be located on existing land currently used for carparking. The unit will be operated as a joint venture between Evolution Healthcare and leading Hawke’s Bay orthopaedic surgeons. Ground works have begun for the project and completion is expected in late 2021.
The combined value of the development works is $19m and is being undertaken on an agreed return on cost whereby the development costs are converted into additional rent for the operating partner, Evolution Healthcare.
Property SummaryAs at 31 December 2020 Royston Hospital 500 Southland Road, Hastings
$72.9m Market Value
|Asset class||Hospital (Acute)|
|Major tenant||Acurity Health Group|
|Market capitalisation rate||5.5% (gross yield)|