← All worked examplesWorked example · Healthcare

A 6,000 m² medical centre.

Sample assumptions, a private hospital anchor that underwrites the deal, and the specialist tenant mix that ramps up around it.

Scale6
Program30 months
Yield on cost vs target (6.25%)−80 bps

02 / Sample assumptions

The market context behind the numbers.

Pricing benchmarks, build rates and finance terms used in this healthcare example. Every one is editable in Popurise.

Assumption sheet07 lines

Day hospital face rent: $580 / m² net
Consult face rent (avg): $525 / m² net
Anchor incentive: Fitout contribution $1.2M
Lease term: Anchor 15 years plus 5 plus 5
Vacancy (stabilised, consult): 7%
Exit cap rate: 5.75%
Senior debt: 55% LVR, 7.50% all-in

03 / Key inputs

The inputs that drive the deal.

Grouped the way Popurise groups them. Change a category, watch the healthcare output set respond.

0104 items

Site and NLA

Site area: 4,500 m²
GFA: 7,650 m²
NLA: 6,000 m²
Car spaces: 140 basement

0206 items

Cost stack

Land: $14.0M
Civils and basement: $5.6M
Shell and core: $26.4M
Anchor fit-out contribution: $1.2M
Pro fees and authority: $3.4M
Finance and leasing: $3.7M

0304 items

Revenue and exit

Day hospital rent: $1.39M pa
Consult rent (stabilised): $1.76M pa
Stabilised NOI: $2.96M pa
Exit value: $51.5M

04 / Base case outputs

The output set, in full.

Every number a developer wants on the screen for a healthcare deal, in one place.

Hero outputYield on cost vs target (6.25%)

−80 bps

Secondary metrics07 lines

Total development cost
$54.3M
Stabilised NOI
$2.96M pa
Yield on cost
5.45%
Exit value
$51.5M
Development margin
negative on base
Equity IRR (sell stabilised)
8.9%
Peak debt
$27.5M

05 / Scenarios

Base, downside, stretch. Side by side.

Three scenarios on the same healthcare project. No copied files. The decision is which one to take to investment committee.

Base case

base

Anchor pre-let, consult leased over 12 months.

Yield on cost5.45%
Spread to exit cap−30 bps
Equity IRR8.9%
Cost per m² NLA$9,050

Verdict

Below the spread the developer needs. Land or build cost has to come down.

Downside

downside

Anchor signs 1,800 m² instead of 2,400. Consult vacancy 12%.

Yield on cost5.02%
Spread to exit cap−73 bps
Stabilised NOI$2.73M
Equity IRR4.6%

Verdict

Returns inadequate. Project not investable on current land cost.

Stretch

stretch

Back-solve land price for 6.25% yield on cost target.

Residual land$9.7M
Yield on cost6.25%
Spread to exit cap+50 bps
Equity IRR13.4%

Verdict

At $9.7M the land works. The negotiation, not the build, decides this deal.

06 / Decision takeaway

Healthcare property looks like office on the inputs. It is not. Anchor covenant tightens cap rates and incentive contributions look like cost but buy income. Land price is the dominant variable.

Healthcare feasibility solution

Open

Healthcare feasibility model

Open

Shape healthcare feasibility in Popurise.

Tell us how your team models this sector today. We are building it with the developers who will use it.