MaxCap Group, Australia’s leading real estate financier has provided APH Holding (APH) with a $150 million first mortgage construction facility for the development of its Wellington Health project in Box Hill, Victoria.
Wellington Health is a 21-level medical building with a net lettable area (NLA) of 27,872sqm and a forecast gross realisation value (GRV) of $300 million. The project forms the first stage of a multiple-stage integrated and full-service healthcare precinct masterplan that APH is developing in Melbourne’s south-east area, given the proximity to Box Hill Hospital and Epworth Hospital.
Box Hill is located only 13km east of the Melbourne CBD and is well-established as a healthcare and educational centre of excellence hub. Box Hill Hospital, which is governed by Eastern Health, is adjacent to the property. Wellington Health is close to the Box Hill retail precinct and a variety of public transport options with the upcoming Surburban Rail Loop only walking distance away.
The project is one of Victoria’s largest vertical medical buildings and targets a 5-star Green Star Rating. Construction works are being undertaken by Maxcon, a highly regarded construction partner with significant experience in the Box Hill area. Works are progressing well with the five-level basement completed, and core structure works continue up to level three. The construction works are forecast to reach practical completion in Q3 2024.
A large portion of the project has a leasing pre-commitment with Eastern Health, one of Victoria’s largest metropolitan public health services, operating more than 60 locations in Melbourne’s eastern region. The balance of space in the project is expected to be leased by other providers of healthcare services, research development, education, training, pharmaceutical, and medical specialists, complementing nearby hospitals.
“We are delighted to be partnering with APH Holding on its Wellington Health project. We are observing a strong appetite for healthcare investment, given the strong growth outlook and historically lower levels of volatility compared to other sectors, as it is less vulnerable to broader economic conditions given the non-discretionary nature of healthcare spending and government support for the sector,” said Zak Fennell, MaxCap Investment Director.
“We look forward to bringing Wellington Health to life and to provide benefit to the local community by providing innovation and dependable excellence in healthcare to support those vulnerable in our community,” said Johnson Zhang, CEO of APH Holding.
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