Liberty Properties has expanded its cash to the health care sector after signing of a 20-year lease agreement with Melomed Richards Bay – a black-owned private hospital group – for the development of Melomed Richards Bay hospital at John Ross Eco Junction, in Richards Bay, KwaZulu-Natal, South Africa.
The private hospital will occupy an area of 10 000m2, with the capacity to accommodate 100 beds.
Liberty Properties will develop the hospital in conjunction with Tuscaloosa as a co-owner, with construction work expected to begin in the thirds quarter of 2015. Tuscaloosa will also operate as landlord with Melomed being the tenant, after completion of construction slated to be the end of 2016.
The hospital would offer services to the uMhlathuze Municipality plus areas such as Richards Bay, Empangeni, Mtunzini and KwaMbonambi.
The new property development will form part of the Liberty Properties portfolio, which includes Promenade Shopping Center in Western Cape, Sandton City, Eastgate in Gauteng and Midlands Mall in KwaZulu.
According to the Direct Property Investment Franchise Head for Stanlib Amelia Beattie, Melomed Richards Bay hospital will help enhance the returns.