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Construction of a new $340 million specialist health facility starts at Herston Quarter

14 Jun 2018

Construction of a new $340 million specialist public health facility is now underway at Herston Quarter in Brisbane.

Transforming the site of the former Children’s Hospital, the $340 million public facility, is the result of a public-private partnership between Australian Unity’s $1.6 billion Healthcare Property Trust and Metro North Hospital and Health Service. The state-of-the-art facility will include 184 beds, seven operating theatres, three endoscopy rooms and outpatient treatment rooms for a range of specialties.

Mark Pratt, Executive General Manager Property at Australian Unity, said the specialist public health facility was the first public hospital in Australia to be funded by private investors in a real estate investment trust.

“Our  healthcare property trust (HPT), has a proven track record of providing healthcare infrastructure and services for the community, while  delivering consistently strong returns for investors”, he said.

Mr Pratt said that the commencement of works at the specialist public health facility is a tangible example of how public-private partnerships and innovative funding structures can deliver the facilities and services our communities need, easing the burden on public budgets while providing an attractive investment proposition to investors.”

Herston Quarter will include a range of health and wellbeing developments, such as a private hospital, aged care, retirement living, residential and student accommodation, retail and commercial space, childcare and new public spaces.

The specialist public health facility is expected to be completed by 2021 and will provide specialist rehabilitation and surgical services.  The University of Queensland intends to occupy parts of the facility dedicated to education and research.  It will also include associated health and retail space for patients, visitors and staff. 

In December 2017, Australian Unity’s Herston Quarter Redevelopment was formally recognised in the inaugural public private partnership awards for ‘Best Social Infrastructure Project’ and ‘Best Financial Structure.’ In May this year, Australian Unity’s HPT was named ‘Direct Property Fund of the year’ in Money Management’s fund manager of the year awards 2018. 




Further information:

Nathan Clarke

Six O’Clock Advisory

P 0400 442 414


About HPT

The following information about HPT is in a summary form and is provided only for background information. It does not purport to be complete and is not intended to be relied upon as advice to investors or other persons.

HPT commenced almost 20 years ago. It has more than 12,000 investors and owns 51 healthcare assets across Australia’s eastern seaboard. It has delivered investors steady, consistent income distributions since its inception and in recent years has also provided capital growth.  In calendar 2017, HPT successfully raised ~$430 million in two tranches in the space of five days to fund its future development and acquisition opportunities.  It has delivered investors a total return of 18.32 percent over one year, 15.30 percent per annum over three years, 12.70 percent per annum over five years and 9.18 percent per annum over a decade (as at 31 March 2018).  Wholesale Units total returns are calculated after fees and expenses and assume the reinvestment of distributions.  Inception date is 2002.  Past performance is not a reliable indicator of future performance. 

About Australian Unity     

Australian Unity is a national health, wealth and living mutual company providing services to almost one million Australians, including 280,000 members. Australian Unity’s history as a trusted mutual organisation dates back to 1840. It has grown organically—by continually evolving to provide the services and products needed by the communities it serves—as well as through successful strategic mergers and diversification in to new business activities.

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