East Freo hospital sparking keen interest

Potential buyers are already keenly looking to snare East Fremantle’s Kaleeya Health Campus, the first state government asset to hit the market from a large portfolio flagged for sale last week.

Commercial real estate agency Colliers International has been appointed to sell the site on behalf of state government agency LandCorp.

The one-hectare site will be offered for sale by vacant possession via a tender process, which will close on November 13.

Colliers International director of institutional and investment services Wayne Lawrence said more than 10 separate parties had already inquired about the asset before the campaign was officially launched.

“It’s very clear there is a huge level of interest and demand there, based on the amount of enquiry we’ve had at a local and national level even before the campaign is taken to market,” Mr Lawrence said.

“It is very difficult to anticipate where the sale price could land on this type of asset – it’s not often that they come to market, and there are some very significant players keen to get their foot on these properties when they do.”

Mr Lawrence said the 70-bed hospital property, located on East Fremantle’s Wolsley Road, would provide an opportunity for a private hospital operator to continue its current use, or for a health care group to convert it into a nursing home or care facility.

Health services at the hospital are set to be transferred to the $2 billion Fiona Stanley Hospital, which is expected to open some of its facilities by the end of the month.

“As a large site in an otherwise affluent and upmarket residential setting, you would have to imagine there would also be buyers looking at the potential to rezone the land for housing development over the longer term,” he said.

The hospital is one of 20 state government-owned sites Premier Colin Barnett announced last week would be sold to reduce the state’s debt.

Other properties set to hit the market in coming weeks include the Shenton Park Hospital, parts of the WA Police headquarters in East Perth and Cottesloe’s School for the Deaf.

Combined with a suite of asset sales announced in August, including the Utah Point port in Port Hedland and the Kwinana Bulk Terminal, the government is expecting to raise $6 billion to put towards reducing WA’s record debt levels.