Financing options for refurbishment of a large hospital

Nous was engaged by a large not-for-profit hospital to examine the financing options for a multi-million dollar refurbishment of one of its large hospital buildings.

Nous identified possible financing options and provided the client with an analysis of the pros and cons of each option. These included a simple loan to pay for the refurbishment, providing long-term leases to tenants and the creation of strata title for some floors. Nous also built a sophisticated financial model to evaluate the financial viability of the project through calculations of net present value, internal rates of return, cash flows and payback period. The model allowed the client to examine the viability of different financing options, different refurbishment options and different tenant structures. As part of this, Nous assisted the client to identify possible usages for the building including aged care and different medical uses and advised the client on the strategic options of whether to proceed with the project.

With the analysis of the different financing options and the use of the financial model, the client was able to make an informed decision regarding the feasibility of the proposed refurbishment. Nous also facilitated a workshop for the CEO of the hospital, and the heads of the public and private hospitals and clinic, to ensure that the project fitted with the campus’ broader strategic direction.