A pair of medical centre investments has transacted in Victoria’s affluent and highly sought-after suburbs of Glen Waverley and Berwick for more than $6.346 million.
The Woodleigh Waters Medical Clinic, located at 137 Moondarra Drive, Berwick, offers multiple income streams, including GP, pathology, dental and pharmacy. The property, which generates a passing income of $293,000, transacted for $5.050 million – reflecting a yield of 5.8%.
The second property – the Kingsway Medical Clinic – situated at 5/40-42 Montclair Avenue, Glen Waverley, is occupied by long-term tenant Hippo Medical Group, in addition to Sonic Healthcare. The property transacted for $1.296 million.
CBRE’s Healthcare & Social Infrastructure team of Jimmy Tat, Marcello Caspani-Muto, Sandro Peluso & Josh Twelftree steered the individual sale of both properties. The property transactions follow the sale of the GP businesses at each centre, also managed by CBRE, earlier this year.
Mr Tat said the transactions underlined the strengthening interest in healthcare as an asset class.
“Demand for both healthcare property and businesses has been strong for a number of years, however, appetite levels have climbed to new heights in 2020, with investors appreciating the essential service nature of the operation. Healthcare is one of few industries that has kept its doors open over the entirety of 2020.”
“Both these opportunities were highly established clinics with trading histories exceeding 10 years. This track record of success provided buyers confidence in the long-term viability of all tenants.”
CBRE’s Mr Caspani-Muto said healthcare real estate was attracting widespread buyer interest.
“There has been a notable increase in investment interest in the asset class from both high net worth privates, syndicates and institutional buyers, who previously have not considering playing the space,” Mr Caspani-Muto explained.
“Both properties offered diversified tenancy mixes, which appealed to a number of existing and long-term investors, as well as several new buyers – with offers submitted from residents of Victoria, New South Wales, South Australia and multiple international locations.”
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