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Vital to double the size of Ormiston Hospital in New Zealand

Construction to start following successful capital raise by property owner Vital Healthcare

Work on a $40 million project that will double capacity at Auckland’s Ormiston Hospital is set to get under way later this month.

Site owner Vital Healthcare Property Trust, New Zealand’s only specialist owner of healthcare property, has engaged Auckland-based Savory Construction as lead contractor on a project that will significantly increase access to surgical facilities for residents of one of the country’s fastest growing regions.

Opened in 2009, Ormiston Hospital is currently home to more than 70 leading medical specialists and surgeons. The hospital provides a range of day-stay, short-stay and in-patient procedures, including orthopaedic, general surgery, weight loss surgery, endoscopy, plastics, gynaecology, urology, oral and eye surgery, and ear, nose and throat surgery.

Ormiston Hospital is operated as a joint venture between Southern Cross Healthcare and local surgeons and private investors. The JV has agreed to take a 20-year lease on the new facility when it is completed, and extended its lease of the existing facility to match.

Ormiston Hospital Board Chair Jeff Barkwill said the planned development will add three purpose-built endoscopy procedure rooms, two of which will be used as soon as they are commissioned with the third available to cater for anticipated growth.

The additional space will increase surgical theatre capacity to six surgical theatres, and create 15 additional inpatient beds, taking the total available to 41. It will also enable two new surgical theatres to open over the next few years, in line with expected demand.

“South-east Auckland is short of surgical resources, particularly orthopaedic and endoscopy facilities, and Ormiston Hospital is at capacity, so this development will help meet that need,” Mr Barkwill said.

Vital recently raised $200 million of new equity to fund several acquisitions and developments, including the expansion of Ormiston Hospital and the purchase of Vital’s first South Island properties.

Vital Healthcare Fund Manager Aaron Hockly said Vital’s properties typically combined a range of complementary facilities and services to create healthcare hubs for local communities.

As well as Ormiston Hospital, the site currently houses various dental, radiology, food service and other healthcare tenants.

Future development for the site could include maternity, primary health and allied health facilities, Mr Hockly said.