The Union Road practice has served Surrey Hills families since 1923, now investors have the chance to own it.
Mont Albert Medical Centre, a Surrey Hills practice that has served the local community since 1923, is being offered for sale for the first time in 71 years, with JLL exclusively appointed to manage the campaign.
The property at 201 Union Road occupies a prominent 1,143sqm corner site at the intersection of Union and Mont Albert Roads, with over 68 metres of combined street frontage and ten at-grade car parks. The converted Victorian-style building offers 270sqm of modern clinical accommodation following a significant refurbishment by the current tenant.
The property is fully leased to ForHealth, one of Australia’s largest medical providers, operating more than 90 locations nationally, under a recently renewed five-year agreement with options extending to 2041. It returns a net income of $150,781 per annum with fixed annual increases of 3.5 per cent.
Mark Stafford, Senior Associate, Alternatives at JLL, said assets of this tenure and covenant strength were exceptionally rare in the Melbourne market.
“The practice has been part of this community for over a century. Assets with this depth of operational history and tenant covenant simply don’t come to market, especially in suburbs like Surrey Hills where the median house price exceeds $2.2 million,” Mr Stafford said.
The centre is part of a concentrated medical precinct on Union Road. The adjoining property at 203 Union Road houses the Union Road Specialist Centre, including the Heart of Melbourne cardiology centre and Melbourne Lipid Centre, while Eastern Gastrointestinal Specialists operates at 205 Union Road. Box Hill Hospital – Eastern Health’s largest acute facility – and Epworth Eastern are both within 1.8km.
The surrounding catchment is undergoing a sustained demographic shift, with 40.1 per cent of Surrey Hills residents now aged over 50, up from 35.6 per cent in 2016, placing continued pressure on local primary healthcare infrastructure.
Thomas Thorsen, Associate Director, Alternatives at JLL, said the demographic profile of the catchment underpinned the long-term investment case.
“Healthcare property continues to attract strong investor interest, underpinned by an ageing population, government support for primary care, and the non-discretionary nature of medical services,” Mr Thorsen said.
Mont Albert Medical Centre is offered via Expressions of Interest closing, Thursday 25 June at 2pm (AEST).
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