Canada’s NorthWest Healthcare Properties and its joint venture partner, GIC, have committed to invest a further A$2.4bn (€1.6bn) in their Australian healthcare platform.

This would increase their total commitment to the joint venture to more than A$6bn, Northwest Healthcare Properties said in a filing to the Toronto Stock Exchange on its financial year 2021 earnings.

The pair are expanding the partnership commitments by around 65%, with the ”additional commitment of A$2.4bn to be funded through debt and equity,” the filing said.

NorthWest’s president and CEO for Australia and New Zealand, Craig Mitchell, told IPE Real Assets: “We have a big focus on creating healthcare real estate and infrastructure for Australia and New Zealand. There is a huge opportunity here as operators respond to changing market conditions.

“NorthWest’s speciality is the development of large healthcare precincts, where we amalgamate the best medical experts and services and co-locate them in one precinct to provide the best possible level of healthcare to the local community.

“We will continue to focus on servicing demand in areas of population growth and material need, such as our recent announcements in areas like Campbelltown, Sydney and Geelong, Victoria.”

“Through our A$3bn development pipeline in Australia and New Zealand, we will continue to focus on servicing demand in areas of population growth, or where there is material under servicing of critical facilities to local communities across Australia,” he added.

NorthWest Australia, now the largest owner, manager and developer of healthcare real estate in Australia and New Zealand, first established its joint venture with GIC in 2018.

It said the platform owned more than 20 healthcare property assets around the country. The portfolio grew 33% in the 12 months to December 2021.

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