Medical centre in Perth’s south with development potential sells for $6 million

A medical centre in the Perth’s southern corridor with development potential has sold for $6 million.

The property at 850 North Lake Road in Cockburn Central, around 19 kilometres south of the Perth CBD in the City of Cockburn, is known as Thomsons Lake Medical Centre.

It consists of a significant landholding of 9,242 sqm occupied by a purpose-built medical centre constructed in 2005 with a total lettable area of 705 sqm, 55 parking bays and approximately 5,650 sqm of excess developable land to the rear.

Tenants within the medical centre include the Thomsons Lake medical centre general practice, occupying 458 sqm, a pharmacy (70 sqm), Western Diagnostic Pathology (87 sqm) and a specialist consultant, Murdoch Psychiatry (90.5 sqm).

The property was purchased by the Tseriotis Family from Australia’s east coast from a private West Australian family in the medical industry in a deal negotiated by Tony Delich and Cory Dell’Olio of Knight Frank.

With a current net income of $390,323 per annum plus GST the site was sold on a net yield of 6.5 per cent.

Mr Delich said the property was in a highly-exposed location in a growth area of Perth.

“The site itself has 40.24 metres of frontage to North Lake Road and with the recently-completed North Lake Bridge, which improves access to the Kwinana Freeway, it has high exposure to passing vehicles every day,” he said.

“The medical centre is well-positioned in Cockburn Central, the urban hub of the City of Cockburn, and a short walk from the Cockburn Central Train Station and Town Centre.

“This growing catchment in Perth’s southern corridor boasts ongoing development as the population grows.

Development in the area includes Cockburn Central West (directly opposite the medical centre), which features a $109 million first-class sport and recreation facility known as the Cockburn Arc, and home to the Fremantle Dockers Football Club.

The new $26 million Bethesda Private mental health facility is also nearby, as is the major regional Cockburn Gateway Shopping Centre, which is set to undergo a major expansion.

Mr Dell’Olio said in addition to the location and quality of the covenant, one of the drawcards for the buyer had been the future development potential of the site.

“There is substantial land at the rear of the property which will likely be home to a residential development in the future,” he said.

“With prices rebounding in the residential market and rents continuing to rise, residential development sites are attractive for buyers.

“First and foremost, however, the quality of the existing offering was key for the buyer.

“Medical and allied health assets are one of the most tightly held sectors within the current market in Western Australia and the demand from investors, especially from the east coast, is still extremely high.”