Royal Adelaide Hospital

In reply to Dr McFETRIDGE (Morphett) (2 November 2016).

The Hon. J.J. SNELLING (Playford—Minister for Health, Minister for the Arts, Minister for Health Industries): I have been advised:

1. Consistent with triennial independent valuation processes, Australian Valuation Solutions Pty Ltd, a Certified Practising Valuer conducted a valuation on 1 June 2015, of the existing Royal Adelaide Hospital (RAH) land and buildings, including site improvements, which resulted in an updated value of $138.654 million on the basis of their use for hospital purposes.

2. Due to the upcoming completion of the new Royal Adelaide Hospital the existing RAH site has been subject to an expression of interest and a detailed negotiation process for the development and occupation of the current site.

As the buildings are of a specialised nature and difficult to reliably measure, SA Health decided to value the buildings and site improvements at no value. This resulted in a net $78 million revaluation decrement for buildings as at 30 June 2015, with $24 million adjusted against an existing asset revaluation reserve and $54 million recognised as a loss on revaluation of building assets expense. The RAH land continues to be valued using a market approach. Accordingly, the adopted valuation is considered consistent with accounting standards.

As at 30 June 2016, the written down value of the RAH land and buildings was $36.725 million.