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Liberty marks entry into healthcare with R220m hospital development

10th April 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The Liberty Property Portfolio has diversified into the healthcare sector for the first time as it eyes the development of a R220-million 100-bed, 10 000 m2 hospital at the John Ross Eco Junction, in Richards Bay, KwaZulu-Natal.

The group, which signed a 20-year lease agreement with wholly black-owned private hospital group, Melomed Richards Bay, will, in conjunction with Tuscaloosa, start construction on the hospital in the third quarter of this year.

Tuscaloosa, which will co-own the property, will operate as the landlord on completion at the end of 2016.

The hospital will serve areas around the greater uMhlathuze municipality, which includes Richards Bay, Empangeni, KwaMbonambi and Mtunzini.

The development forms part of Liberty’s strategy to diversify its R30-billion traditionally retail-focused portfolio, which comprises Sandton City and Eastgate, in Gauteng, Midlands Mall, in KwaZulu-Natal, and Promenade Shopping Centre, in the Western Cape.

“Melomed will be a strong tenant that will enhance the portfolio’s returns,” says Stanlib Direct Property Investment Franchise head Amelia Beattie.

Liberty’s focus will now turn to the light industrial and office property sectors to add further value to shareholders.

The 195 000 m2 mixed-use commercial development, the John Ross Eco Junction, was also developed and is managed by the Liberty Property Portfolio, providing the portfolio exposure to the industrial property sector.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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