Toowong Private Hospital Archives

Th 5,835-square-metre Auchenflower property formerly occupied by Toowong Private Hospital has sold for $12.2 million, with residential, retirement, care and healthcare uses among the options identified for the site.

Colliers Campaign Puts Auchenflower Site On The Market

Colliers marketed 496 Milton Road by Expression of Interest under instructions from the appointed liquidators, with the campaign closing on 23 October 2025 at 4pm AEST.

Brendan Hogan, Troy Linnane and Chris O’Driscoll were named as the exclusive Colliers agents for the property. The completed sale followed a campaign that attracted interest from residential developers, healthcare operators and investors.

healthcare property — Photo Credit: Colliers

The property was offered with vacant possession. Its sale campaign identified two broad pathways: pursuing a residential development outcome or retaining and repurposing the existing improvements for healthcare or allied services, subject to conditions and approvals.

The site has frontage to both Milton Road and Cadell Street. It is close to Auchenflower Railway Station, bus services along Milton Road and the Wesley Hospital.

Toowong Private Hospital Site Has Several Possible Uses

The land is zoned Low-Medium Density Residential (LMR2). Potential outcomes identified for the property include boutique apartments, townhouses, retirement living, residential care and healthcare uses, all subject to council approval.

Brisbane development — Photo Credit: Colliers

Three detached buildings remain on the property: the original purpose-built hospital, a former specialist medical centre and a character dwelling fronting Milton Road.

Hospital Closed In 2025

Toowong Private Hospital ceased operating in June 2025 amid financial difficulties. The psychiatric hospital was founded by Brisbane builder and philanthropist Noel Austin Kratzmann in 1989 and remained owned and operated by NA Kratzmann & Sons until its closure.

About 3,000 patients were treated there each year before the closure. The hospital provided psychiatric care as well as dedicated trauma and alcohol recovery programs for current and former military personnel, together with outpatient support services.

EY administrators were appointed in 2025 but found no viable option to keep the hospital operating. A preliminary report recorded net operating losses of $4.7 million by 2024, with declining patient admissions and inpatient care identified as contributing factors.

The $12.2 million sale places the Auchenflower property under new ownership, while any future residential, retirement living, residential care or healthcare outcome remains subject to council approval.

Published 19-August-2026

A Trusted Facility in Flux

According to restructuring firm EY, the hospital’s operations will continue during the administration process. The firm has appointed David Kennedy, Colby O’Brien, Robyn Duggan, and Andrew Hanson to manage the transition. Staff were informed the day before the announcement, and the administrators stated their commitment to maintaining patient care and daily functions.

Mr Kennedy said the team recognises the difficulties faced by the hospital, particularly as it tries to recover from trading challenges brought on by the COVID-19 pandemic. A full financial and operational review is now underway, with the administrators actively exploring potential sale options to keep the hospital’s services going.

This decision follows months of unsuccessful efforts by the owners to find a buyer, which led to the appointment of voluntary administrators.

Deep Roots in Brisbane’s History

The facility was developed by builder and property developer Noel Austin Kratzmann, who opened the hospital in May 1976 and served as its board chair until he died in 1989. Mr Kratzmann was a notable figure in Queensland’s construction sector from the 1950s, winning contracts for major developments such as the Chevron Hotel in Surfers Paradise, regional power stations, and several University of Queensland buildings.

Beyond construction, the Kratzmann family has a long-standing legacy in Brisbane’s cultural and academic sectors. They supported the establishment of the Twelfth Night Theatre’s home at Bowen Hills and later funded the Kratzmann Chair of Psychiatry at UQ. Their contributions also aided in restoring the university’s Customs House city campus.

What Comes Next

A first meeting of creditors is scheduled for 26 May 2025. Mr Kennedy has stated that all stakeholders—including patients, families, and staff—will be kept updated throughout the process.

The community, which has long relied on the hospital for psychiatric care, is expected to watch developments in the coming weeks closely. While the final outcome remains uncertain, the administrators clearly intend to prioritise continuity of care and assess the best path forward for the hospital’s future.

Published 19-May-2025

Tag: Toowong Private Hospital

Toowong Private Hospital Site in Auchenflower Changes Hands in $12.2-M Sale