The compulsory acquisition of Calvary Public Hospital in Bruce could be valued at more than $200 million, property industry sources have suggested.
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The ACT government has said the acquisition will be done under "just terms" and compensation will be provided.
However Chief Minister Andrew Barr on Thursday refused to speculate on what the government would pay to Calvary.
Industry experts say the value of the 12.7-hectare block, its uses and the existing buildings would be well in excess of the reported $77 million deal the ACT government had on the table in 2010.
One industry source was confident the market value today would be more than $200 million.
Another source agreed this was a reasonable suggestion, pointing to the sale of Calvary John James Hospital in 2018 as a comparison.
Barwon Investment Partners purchased the Deakin hospital buildings and land for more than $100 million.
While the Deakin buildings are newer than those in Bruce, the John James campus sits on a much smaller, four-hectare site.
Demand for medical properties, or what the industry calls "life sciences" real estate, has surged in recent years, which one source said would add to the market value of the Bruce properties.
The expert suggested life science assets had become more lucrative than office real estate.
A 2022 report by commercial real estate firm JLL stated Australia's private hospital sector, at the time worth $25 billion as real estate assets, was expected to rise in value by at least 63 per cent over the next two decades to $41 billion.
The report stated low volatility and an ageing population had made healthcare real estate increasingly attractive to investors.
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Another report into the sector, released in 2023 by commercial property agency CBRE, stated an "ageing and more health-conscious population, solid occupier demand and strong investor interest" was growing the life sciences real estate sector across Asia Pacific.
The firm said investors were attracted to low vacancy rates and long leases commonly associated with life sciences assets, which typically have average lease expiries of 10 to 15 years due to the capital required to establish new facilities.
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