$15m sale of medical and childcare hub shows continued demand for essential service assets

6 June 2024

In a sign of continued interest in essential service assets, a 2,300 sqm purpose built integrated medical and childcare facility has sold off-market for $15 million to a Victorian based investor.

Transacted by Colliers Queensland agents Nick Wedge and Chris O’Driscoll on behalf of a valued private client, ‘The Hub’ located at 41 Queen Street, Goodna is anchored by Kids Early Learning Centre, a 112-place childcare centre as well as tenants Café 63 and Prime Performance Physiotherapy all on a 6,459 sqm site.

Colliers Queensland Investment Services Director Nick Wedge said The Hub was a brand new facility returning $984,650 p.a. located in the gateway suburb of Goodna which serviced both the local area and surrounding growth catchments.

“Rarely do new medical and childcare centres come to market and this site presented a great opportunity for astute investors to purchase a trophy, generational holding,” Nick Wedge said.

“We carried out a tailored off- market process to 20 investors on behalf of the developer, with all parties showing interest in the asset offering a 6.26 WALE by area.

“The surge in population has fuelled the demand for essential service assets, strengthening the position as a viable investment opportunity, with this asset transacting at a 6.56 per cent yield,” Nick Wedge added.

Colliers Healthcare and Retirement Living National Director Chris O’Driscoll said the development focused on the two complimentary components of health and childcare with a supporting Café.

“The asset offered significant depreciation benefits and appealed to generational, trophy investors looking for a defensive asset class in a high growth corridor,” Chris O’Driscoll said.

“The Hub allows businesses to co-locate with like-minded and complimentary neighbours, providing the ability to consolidate a health community second to none.

“The involvement of active institutional investors in this price point, that also attracts high net worth individuals, has resulted in significant yields in past years, with this off-market sale seeing a great result for both the seller and the purchaser in a strong performing sector,” Chris O’Driscoll added.