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, would, in conjunction with Tuscaloosa, start construction on the hospital in the third quarter of this year.
Tuscaloosa, which would co-own the property, would operate as the landlord upon completion at the end of 2016.
The hospital would serve areas around the greater uMhlathuze municipality, which included Richards Bay, Empangeni, KwaMbonambi and Mtunzini.
The development formed part of Liberty’s strategy to diversify its R30-billion traditionally retail-focused portfolio, which comprised 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,” said Stanlib Direct Property Investment Franchise head Amelia Beattie.
Liberty’s focus would 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 managed by the Liberty Property Portfolio, providing the portfolio exposure to the industrial property sector.