Healthcare Investment Activity Accelerates in Greater Melbourne as Key Medical Assets Change Hands | JLL

JLL’s Alternative Investments team has successfully negotiated the sale of two high exposure medical assets in Werribee as investor demand continues to strengthen in Melbourne’s high-growth western corridor.

The sales of Medical Centre 291 and Westpoint Day Hospital & Specialist Centre reflect growing recognition of Werribee’s emergence as a key healthcare and education hub, underpinned by significant population growth and infrastructure investment.

The transactions were negotiated by JLL’s Mark Stafford, Thomas Thorsen and Simon Quinn.

Mr Stafford said the resilience of healthcare assets is attracting investors seeking stable, long-term returns in a changing economic landscape.

“The healthcare sector continues to outperform, offering long leases, essential service delivery, and resilience against market cycles,” he said.

“Werribee’s ongoing evolution into a major health and education precinct is further strengthening the appeal of assets in this location.

“Both sales highlight the continued demand for affordable healthcare assets, with cashed-up investors ready to act swiftly to secure well-positioned properties underpinned by proven market operators.”

Situated on 291 Princess Highway, directly opposite Werribee Mercy Hospital, Medical Centre 291, was sold for $3.61 million, reflecting an initial yield of 5.90 per cent. The property is leased to a single-location operator with more than two decades of successful trading in the area.

JLL’s four-week Expressions of Interest (EOI) campaign generated 162 enquiries and four formal offers, with the property selling to a Queensland-based investor on a cash basis.

Located at 243-245 Heaths Road, Westpoint Day Hospital sold for $2.55 million at a sub-5 per cent return.

Fully leased a locally based and longstanding local healthcare provider, the EOI campaign attracted 147 enquiries and seven formal offers, delivering a competitive sale outcome.

Mr Thorsen noted that interstate investors continue to be attracted to the value proposition on offer in Victoria, with healthcare assets at the top of their list.

“Healthcare remains at the top of the list for private investors, and we are seeing a strong increase in interest from strategic investors based in New South Wales and Queensland for Victorian assets.”

“Area’s such as Werribee that feature strong population growth and infrastructure pipeline are helping to future-proof healthcare investments and underwrite investor interest,” he added.

Mr Stafford noted that Healthcare real estate in growth corridors like Werribee offer a compelling combination of essential service demand and long-term capital growth potential.

“Investors recognise the security and upside these assets provide,” he said.