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.”
| Property | Building area | Tenant | Lease term | Income |
| 10 Leith Road, Montrose, Victoria | 252sqm | Sia Medical | Seven years, with two five-year options | $108,000pa |
| 530-532 Melton Highway, Sydenham, Victoria | 339sqm | Capital Radiology | Five years, with five-year option | $132,000pa |
| 90 Henley Beach Road, Mile End, South Australia | 647sqm | The Sports and Arthritis Clinic | 10 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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