Barwon Fund Buys Australian Hospital for $208 Million
Barwon Investment Partners, controlled by Hillhouse's Rava Partners, has acquired the 350-bed Peninsula Private Hospital in Victoria for A$291.25 million
An Australian fund manager has purchased a major private hospital in a landmark deal for the healthcare real estate sector. Barwon Investment Partners, majority-owned by Hillhouse Investment Partners' Rava Partners division, acquired the Peninsula Private Hospital for A$291.25 million ($208.1 million) from Australian Unity.
Broker JLL described the transaction as the country's largest-ever sale of a private healthcare facility. Simon Quinn, JLL's Sydney-based head of alternative investments and capital markets, confirmed the details of the purchase.
The acquisition is an important step in the continued growth of the fund and demonstrates our ability to execute on investments at this point in the cycle, said Tom Patrick, Barwon's managing partner and head of healthcare property.
The Hospital Asset
The 350-bed Peninsula Private Hospital is located in Langwarrin, approximately 45 kilometres southeast of Melbourne. It provides emergency, surgical, cardiac, and obstetric services.
The facility is fully leased to Ramsay Health Care, Australia's largest private hospital operator. The lease is long-term and features rental increases indexed to inflation.
Barwon is making the investment through its Barwon Institutional Healthcare Property Fund. This vehicle provides institutional investors with exposure to Australian healthcare real estate. Melbourne-based law firm Arnold Bloch Leibler advised on the acquisition.
Financial Details and Vendor Motive
Australian Unity originally bought the asset in 2006 for A$47 million plus acquisition costs. The member-owned mutual company later expanded the property through a series of brownfield projects.
The vendor revalued the hospital at A$317 million in August 2025. However, that valuation was later reduced to A$291.25 million as of July 31, 2026.
Key financial metrics for the asset as of July 31, 2026, included a weighted average lease expiry of 34 years and an unlevered internal rate of return of approximately 10.7 percent.
This sale represents the first major divestment from the Australian Unity Healthcare Property Trust. In May, the trust announced plans for an A$600 million sell-off, including this hospital, to reduce debt and strengthen its balance sheet.
Barwon's Healthcare Strategy
The acquisition is Barwon's first major deal since it was taken over by Singapore-headquartered Hillhouse earlier this year. Hillhouse manages about $100 billion in assets globally. This move gave Hillhouse, led by fund manager Zhang Lei, control of a manager overseeing roughly A$3 billion in healthcare real estate, credit, and private markets.
Barwon has a 20-year history building a portfolio of medical real estate. Its holdings include doctor's offices, outpatient clinics, medical labs, and private hospitals.
The firm's Institutional Healthcare Property Fund launched in 2016. It targets annual yields between 4.5 percent and 5.5 percent, with a total return goal of more than 8 percent net of fees.
Outside of healthcare, Rava Partners last year took a majority stake in Australia's biggest student housing operator, UniLodge, in a deal valued at A$600 million.
