90 Henley Beach Road Mile End

Healthcare sites feature in new auction event

Two healthcare facilities in Melbourne and another in Adelaide will go under the hammer next month, in Australia’s first dedicated portfolio auction in the sector.

CBRE’s maiden Australian Healthcare & Childcare Portfolio Auction will be held in Melbourne on August 24, amid significant investor interest and a scarcity of opportunity.

Healthcare sites in Montrose in Melbourne’s eastern suburbs and Sydenham to the north-west are accompanied in the auction event by a property in Mile End, just west of the Adelaide CBD.

The auction in CBRE’s Melbourne office is being handled by Sandro Peluso, Jimmy Tat, Marcello Caspani-Muto, Harry Einarson and Mitch Curnow.

With buildings ranging 252sqm-647sqm, all three properties are occupied by highly-regarded operators on long-term leases; Sia Medical in Montrose, Capital Radiology in Sydenham and The Sports and Arthritis Clinic in Mile End.

“Healthcare investments are incredibly rare in the broader commercial market, with only a handful transacted each year, mostly to high-net-worth privates or institutional buyers,” Mr Peluso said.

“When you talk about medical investments in the sub-$10m bracket this scarcity is compounded, and we regularly hear from private investors seeking quality opportunities in this space.

“This lack of availability fuelled our team’s desire to develop a dedicated auction event, giving private investors a platform to compete on a level and transparent playing field for what might be the only assets of this type offered in 2022.”

PropertyBuilding areaTenantLease termIncome
10 Leith Road, Montrose, Victoria252sqmSia MedicalSeven years, with two five-year options$108,000pa
530-532 Melton Highway, Sydenham, Victoria339sqmCapital RadiologyFive years, with five-year option$132,000pa
90 Henley Beach Road, Mile End, South Australia647sqmThe Sports and Arthritis Clinic10 years$275,000pa

“Medical investments with this calibre of tenant that are expected to transact in the sub-$10m pricing bracket are few and far between; having three in the same portfolio is unheard of,” Mr Tat added.
“Sia Medical, Capital Radiology and The Sports and Arthritis Clinic are market leaders, and well-established in these locations.

“Given how entrenched each operation is within its local community, these really are long-term investment prospects.”

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