A fully-leased healthcare asset on the southern Gold Coast has changed hands, with Galleon Way Medical Centre in Currumbin Waters selling for $4.925 million following a competitive Expressions of Interest (EOI) campaign.
Located at 1/174 Galleon Way, the medical centre occupies the entire ground floor of a three-lot strata complex with a net lettable area of 578sq m and 25 onsite car parks on a 1,576sq m site.
Knight Frank agents Hayden Ryan, Jacob Heinke and Clem Stack negotiated the sale on behalf of a local private investor, with the asset ultimately acquired by an interstate private investor.
The property transacted on a passing yield of 5.87%, reflecting continued investor appetite for defensive, income-secure healthcare assets.
The centre is 100% leased to a diversified mix of medical and allied health tenants, including Galleon Way Medical, Galleon Way Dental, a pharmacy, pathology clinic and a café. The asset is anchored by Galleon Way Medical, which recently renewed its lease for a further 10 years and has operated from the property since its development in 1999.
The investment offers a weighted average lease expiry (WALE) of approximately 6.74 years by income, supported by fixed annual rental increases of 3.5 to 4 per cent across the leases.
Mr Ryan said the campaign generated strong interest from a broad pool of buyers, including traditional investors and private buyers both locally and interstate.
“Galleon Way Medical Centre attracted more than 80 enquiries throughout the four-week Expressions of Interest campaign, culminating in multiple offers at close and highlighting the depth of demand for quality healthcare assets,” he said.
“The result demonstrates investors’ ongoing confidence in defensive healthcare assets underpinned by essential services, long lease profiles and built-in rental growth.
“Galleon Way Medical Centre is the definition of a set-and-forget healthcare investment, providing the buyer with long-term income security.”
Mr Heinke said the Gold Coast’s demographic fundamentals continue to support healthcare investment.
“Healthcare assets in growth markets such as the southern Gold Coast are particularly sought after, driven by strong population growth, an ageing demographic and increasing demand for medical services.
“Strategically positioned near several established aged care facilities, Galleon Way Medical Centre benefits from consistent patient demand.
“It is also prominently positioned with significant frontage, giving the asset excellent exposure and visibility.”
Mr Stack said: “The Federal Government continues to place greater emphasis on primary and secondary healthcare facilities to reduce the burden of funding on the public system and hospital bed block.
“Primary care assets like Galleon Way Medical Centre are strongly positioned to capture the growing demand for acute care for chronic conditions, with 38% of the current population managing one or two of these conditions.”
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