Opportunity to Acquire Two Flagship Investments in the Box Hill Healthcare Precinct

4 April 2025
Ekera Medical Centre

Rare opportunity expected to attract strong interested from local and international investors

New Zealand listed REIT Vital Healthcare Property Trust has listed two of its flagship assets within the Melbourne Box Hill healthcare hub for sale.

The Ekera Medical Centre, located at 116-118 Thames Street, and 120 Thames Street are being sold via an International Expressions of Interest campaign.

CBRE’s Australian Healthcare & Social Infrastructure team of Mark Granter, Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat are managing the marketing of the properties and expect a strong mix of interest from private local and Asian capital sources, syndicators, and healthcare REITs.

Vice President of Capital Transactions at NorthWest Healthcare Properties REIT Cameron Ramsay, who manages the Vital Healthcare Property Trust, said ā€œThe Ekera and 120 Thames Street have served Vital well during a period of expansion of the core Epworth Eastern asset. These properties now provide a rare opportunity for investors to secure prime healthcare precinct real estate at an opportunistic time in the cycle.ā€

The neighbouring properties feature an interconnected basement and are available for sale individually or as a combined offering.

The Ekera Medical Centre was constructed in 2013 and is a mainstay within the healthcare precinct. The centre is a four-level, multi-tenanted medical office building spanning 2,890sqm on a land area of 1,881sqm. Anchor tenancies include medical imaging, sports medicine, IVF and stem cell research. It has a fully-leased income of $2,151,825 annually.

Constructed in 2017, 120 Thames Street is a three-level medical office building spanning 1,319sqm on a land area of 903sqm. The asset is anchored by leases to Sonic Healthcare, NewLife IVF and the Epworth Foundation with a fully-leased income of $792,242 annually. 

CBRE’s Mark Granter said given the flexibility and value-add potential of a dual holding, buyers are expected to pursue both assets together.

ā€œWhile there has been an increased level of healthcare opportunities come to market, few have had the combination of location, asset quality, and price point to appeal to both private and public markets like these.

ā€œThe assets are situated in one of the highest quality healthcare precincts in Australia, close to Box Hill Public Hospital, Epworth Eastern Hospital and the Box Hill Institute. As well as interest from private and institutional level capital, we expect there may also be interest from owner occupiers who see longer term potential in the assets given their quality and placement,ā€ Mr Granter added.

CBRE’s Marcello Caspani-Muto said, ā€œThe Ekera Medical Centre has a diversified tenancy mix and history of almost zero vacancy. The tenants within the building have modern and capital-intensive fit outs so long-term retention is incredibly strong.

ā€œBoth properties are located within the Box Hill SRL Precinct Structure Plan, set for release in 2026. Independent planning advice and the draft plan indicate a significant increase in development potential, with height limits expected to rise from four to seven levels (STCA),ā€ Mr Caspani-Muto added.

The Expressions of Interest campaign will close on May 5th 2025 at 2pm AEST.