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August 17, 2026 \u2014 4:55pm<\/p>\n
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Remove items from your saved list<\/a> to add more.<\/p>\n AAA<\/p>\n Toowong Private Hospital has passed from the hands of one Brisbane family to another, with liquidators selling the collapsed mental health facility for more than $12 million to local developers.<\/p>\n The psychiatric hospital, which collapsed under millions of dollars worth of debt,<\/a> was founded by influential Brisbane builder and philanthropist Noel Austin Kratzmann in 1989.<\/p>\n It was still owned and operated by NA Kratzmann & Sons until its sudden closure in June last year.<\/p>\n Liquidators sold the 5835-square-metre Milton Road property in Auchenflower to Carbone Developments, led by second-generation developers and brothers Don and Tony Carbone, for $12.2 million.<\/p>\n Carbone Developments have been operating in Brisbane for more than 20 years.<\/p>\n Related Article According to their website, they \u201cspecialise in delivering bespoke contemporary medium- to large-scale residential projects located in specifically selected urban locations\u201d.<\/p>\n The brothers bought the fire-damaged, heritage-listed Broadway Hotel in Woolloongabba for $8.8 million under their related entity Broadway Projects in 2021.<\/p>\n Despite securing approval to restore the historic pub and build a 34-storey apartment tower behind it<\/a>, the developers put the hotel back on the market earlier this year to focus on their pipeline of medium-scale developments in Brisbane\u2019s northern suburbs.<\/p>\n They have recently started construction on The Atley apartments in Mitchelton, next to their existing Parque complex.<\/p>\n Carbone Developments declined to comment when contacted by this masthead.<\/p>\n Toowong Private Hospital, which treated 3000 patients annually, was once one of Brisbane\u2019s leading psychiatric hospitals. It collapsed amid a hospital funding crisis that is putting private health facilities across the country at risk.<\/p>\n Administrators EY were appointed last year, but found no viable option to keep the hospital operating, and the Crisafulli government rebuffed doctors\u2019 and patients\u2019 pleas to acquire the facility<\/a>.<\/p>\n Selling agents Colliers marketed the dual-frontage site as one of Brisbane\u2019s most versatile and rare inner-city land holdings. <\/p>\n \u201cLarge development sites in established inner-city suburbs … are becoming increasingly difficult to secure and, when they do come to market, competition is fierce,\u201d said Troy Linnane, Colliers\u2019 director of Queensland residential development sites.<\/p>\n \u201cThe buyers recognised the opportunity to unlock the site\u2019s potential for a new apartment development in one of Brisbane\u2019s most sought-after lifestyle precincts.\u201d<\/p>\n The property is zoned Low-Medium Density Residential (LMR2), allowing for a range of future In its preliminary report to the Australian Securities and Investments Commission, EY said the hospital\u2019s net operating losses amounted to $4.7 million by 2024 due to \u201cthe decline in patient admissions and inpatient care\u201d.<\/p>\n An industry source with knowledge of the hospital said the facility could no longer service its debts after years of being short-changed by health insurers while the cost of providing treatment skyrocketed.<\/p>\n Greens MP for Maiwar, Michael Berkman, said he was dismayed the state government had refused to save the much-needed psychiatric facility.<\/p>\n \u201cIt\u2019s an absolute tragedy that this crucial mental health service is now just another property asset on some developer\u2019s books,\u201d Berkman said.<\/p>\n \u201cWe don\u2019t know yet what the developer has planned for this site, but we do know we\u2019ve forever lost a hospital that helped hundreds of people through their hardest times.<\/p>\n Related Article \u201cThe Queensland government was happy to let Toowong Private Hospital close \u2026 If nothing else, this should be a wake-up call \u2013 a clear demonstration of how privatised healthcare is failing.\u201d<\/p>\n The hospital provided dedicated trauma and alcohol recovery programs for both current and former military personnel, as well as out-patient support services.<\/p>\n At the time, the state government said it was located too far from other public hospitals and needed a major refurbishment<\/a>.<\/p>\n Start the day with a summary of the day\u2019s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/08\/f64196feb24df8547c85c14b8d60dde9c82331d3.jpeg\")
The site of the former Toowong Private Hospital has changed hands more than a year after the private health facility collapsed under debt.Colliers<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/08\/4be4a96d6bd97584e3088e95b8b3b05ca36dfdaa749f37a600b12abdceec9f5f.jpeg\")
<\/a><\/p>\n![\"An](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/08\/b67b19e69d30aa01ee3a122f69af73b54b3afe9a.jpeg\")
An artist\u2019s impression of The Atley apartments, which are under construction by Carbone Developments.Carbone Developments<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/08\/6d6fe60ab415f9cb4b6ec410affe0861ff9ee2c9.jpeg\")
The land is located less than six kilometres from the CBD, making it a prime development site.Colliers<\/p>\n
outcomes, including boutique apartments, townhouses, retirement living, residential care or
healthcare uses, subject to council approval.<\/p>\n![\"Toowong](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/08\/f7677d279d53b51f8f16c5143f8eb15d917c781eae241cab7dc8fb44714b63be.jpeg\")
Toowong Private Hospital once treated 3000 patients a year, including Australian Defence Force personnel, veterans and emergency services workers being treated for post-traumatic stress disorder.Courtney Kruk<\/p>\n![\"Toowong](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/08\/04d80a658799506c9ac0f66bddf9ef474d1d0316b455f09995496680bcd35f0d.jpeg\")
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