Former Mount Waverley bank changes hands for $7.2m

5 December 2020

The former the home of an ANZ branch in Mount Waverley has sold in an off-market transaction for $7.2 million.

Located at 533 Blackburn Road, the 4,500sqm property is situated amongst the rapidly expanding Glen Waverley office precinct and comprises a 1,000sqm building and 57 car spaces. The property, which once housed ANZ’s Mount Waverley branch and, more recently, the Encompass Medical Centre, is permit-approved for 19 health practitioners.

CBRE’s Healthcare and Social Infrastructure team completed the transaction, reflecting a passing yield of 3.1% and building rate of $7,200 per square metre.

CBRE’s Sandro Peluso said the sale highlighted strengthening investment appetite for healthcare investments.

“This transaction underlines the strengthening interest in healthcare property as an investment class. Mount Waverley – and the city of Monash more generally – are fast becoming an established healthcare precinct, with several surrounding complementary services in the immediate vicinity, Mr Peluso said.

“Furthermore, given the rising consumer demand for suburban healthcare supercentres, we expect the precinct to grow even more rapidly in the short to medium term as developers and operators look to expand and establish new premises.”

CBRE’s Marcello Caspani-Muto added: “We have experienced strong levels of interest from healthcare groups over the course of 2020, with a number of owner occupiers and super clinic developers expressing interest in acquiring the property. An underlying permit for 19 practitioners holds substantial value for medical groups who really can turn the property into a one stop healthcare shop with GP, physiotherapy, radiology, pharmacy and more with the Waverley Private hospital only moments away.”

The Blackburn Road property also benefits from proximity to the recently acquired office development and new Nissan headquarters at 245 Wellington Road, Mulgrave, which will include 60,000sqm of approved commercial space.

Last year 541 Blackburn Road, Mount Waverley a fully leased office complex with close to a 4 year WALE was sold at a building rate $6,017 ($21,830,000). The transaction represents what could be sign of things to come in the future of healthcare investments with the asset class gaining in popularity by the day and what could soon be the “Darling of commercial real estate” according to the CBRE team.