A modern, fully-leased medical centre in Cessnock, at the gateway to the Hunter Valley, has sold for $6.9 million following a competitive Expressions of Interest campaign.
Vincent Street Medical Centre at 275 Vincent Street, a purpose-built facility completed in 2021, comprises 1,018sq m of net lettable area on a 4,249sq m site, with 42 on-grade car spaces and ambulance access.
The centre is 100% leased and anchored by All Ways Health, part of the institutionally backed ForHealth Group, which has a network of more than 1,800 doctors across 95 centres. Chemist Discount Centre Cessnock also occupies the property.
The property changed hands on a passing net yield of 6.33%, reflecting a net income of $436,556 plus GST per annum. It has a weighted average lease expiry (WALE) of approximately 8.4 years by income.
It was purchased by a Wollongong-based investor in a deal negotiated by Knight Frank agent Brent Sinclair on behalf of a private fund.
Mr Sinclair said the campaign attracted 111 enquiries, reflecting the depth of investor appetite for quality healthcare assets.
“Medical centres leased to established healthcare operators continue to be one of the most keenly sought-after asset classes, and this property delivered on every front: a modern building, a long WALE, secure annual rental growth and an institutionally-backed tenant,” he said.
“With the medical lease running to 2033 and the pharmacy lease to 2038, both with substantial option periods, the purchaser has secured a long-term, defensive income stream in a growing regional market.
“Healthcare assets of this calibre rarely come to market in the Hunter, and the result demonstrates that well-leased, essential-service properties in regional NSW continue to attract strong competition.”
Mr Sinclair also said the property’s position within Cessnock’s established commercial precinct was a key drawcard for buyers.
“The centre sits alongside major national retailers including Bunnings, Coles, Woolworths and McDonald’s, which drives consistent visitation and makes it a convenient destination for the local community,” he said.
“Cessnock serves a growing population as the gateway to the Hunter Valley, underpinning demand for essential medical and pharmacy services.
“The combination of strong on-site parking, ambulance access and complementary medical and pharmacy tenants positions the property to perform well over the long term.”
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