Figtree Private Hospital has been listed for sale through an EOI campaign, closing on October 15.
The 58-room rehabilitation and allied health facility is fully leased to ASX-listed Ramsay Health Care until 2035.
Passing income is more than $1.55 million a year, with CPI-linked reviews. A vacant northern parcel also carries an approved subdivision, giving a buyer potential development optionality beyond the existing income stream.
The tenant covenant behind the asset has strengthened since the lease was struck.
Ramsay shares rose almost 14 per cent to their highest level in more than two years after the company reported a 23 per cent increase in full-year net profit in late August, driven by higher hospital admissions and improved margins.
Chief executive Natalie Davis, Woolworths’ former head of supermarkets, has led the company since 2024 and has been centralising procurement and other operations across the group.
The improvement in Ramsay’s financial performance is relevant for a potential buyer as a stronger balance sheet and tighter operating model potentially reduces the perceived risk attached to a long-dated lease.
The competitive landscape has also shifted.
Ramsay’s biggest rival, Healthscope, collapsed into receivership in May with debts of $1.6 billion. Ramsay is acquiring Healthscope’s National Capital Private Hospital in Canberra for $251 million, highlighting the consolidation under way across Australia’s private hospital sector.
That consolidation could support investor interest in healthcare property, particularly assets with long leases to established operators.
The bigger picture
The marketing emphasis on Figtree’s proximity to Wollongong Private Hospital comes against a more complicated planning backdrop.
NSW planning authorities last month rejected a major “medi-hotel” expansion at the nearby Ramsay-run facility over concerns including height, traffic and helicopter flight paths.
Developer AA Crown Holdings, owned by vascular surgeon Dr Arthur Stanton, declined to provide additional information requested during the assessment.
The decision does not directly affect Figtree Private Hospital, but it adds another dimension to the outlook for healthcare development in the immediate precinct.
The listing lands as significant government money moves into Illawarra health infrastructure: $220 million has been committed to planning and early works at Wollongong Hospital, and the Shellharbour Hospital and Integrated Services project, funded jointly by state and federal governments, under construction at a confirmed cost of $828.9 million.