Baptcare Preston home set for SDA future after $5.5m sale

One of Victoria’s largest non-profit providers of supported accommodation, Baptcare has sold its former 48-room aged-care home in Preston for $5.5 million.

The 2,637sqm site at 547-567 Bell Street was purchased by a private investor, which will convert the property into specialist disability accommodation.

Brokered by CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat, the transaction is Baptcare’s first ever sale of one of its facilities and the fifth of a vacant retirement or aged-care home in Australia this year.

Over the coming weeks, vacant facilities in Glen Waverley and Northcote in Victoria, and Cairns, Clayfield and Toowoomba in Queensland will also hit the market.

“From selling an average of two vacant aged-care homes in 2018, ’19 and ’20, our specialist CBRE team sold five last year and we’ve already matched that tally this year,” Mr Peluso said.

“With sale campaigns for five more beginning in the coming weeks, we’re on-track to reach double figures by the end of 2022, underlining the growing appetite in the market from investors, developers and owner occupiers.

“Existing healthcare and aged-care users are the most active parties, however this Baptcare site is among the facilities that have been purchased by an investor looking to re-lease or convert the existing improvements.”

The former Baptcare site occupies a corner landholding on Preston’s major east-west arterial, 9km north of the Melbourne CBD, and features additional access via Scotia Street and a rear laneway.

Its 1,850sqm, two-level building features 48 rooms with their own ensuites, several communal areas and separate offices.

“The size and scope of the existing improvements are substantial and Baptcare maintained the premises to a high standard,” Mr Caspani-Muto said.

“While there were developers looking at the property, it’s the improvement value that really drives price for these assets, particularly in the current economic climate.

“At the end of the process there were four shortlisted parties competing for the property, all with a use for the exiting building either via extension, renovation or reposition.”

2022 sales of vacant retirement and aged-care facilities

AddressSale PriceMonthAgency
2-6 Copernicus Way, Keilor Downs$3,550,000JanuaryCBRE
241 Dandenong Road, Windsor$10,000,000MarchCBRE
472 Springvale Road, Springvale South$5,500,000AprilCBRE
1 St Johns Lane, Mount ElizaUndisclosedJuneCBRE
547 Bell Street, Preston$5,550,000SeptemberCBRE

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