Over $10m sale of Redcliffe Qscan site also offers opportunity for further development

27 February 2024

In a sign of continued interest in medical assets, a 4,454 sqm site housing Qscan in Redcliffe has sold off-market for $10.4m to Allamanni Developments.

In assessing this site, Allamanni’s Acquisitions Manager, Irina Monnier, recognized a significant opportunity to develop a medical centre, given its proximity to Redcliffe Hospital.

“The long-term commitment from Qscan as an anchor tenant certainly validates the site for additional medical uses and adds considerable value to our proposed development,” Irina said.

“We are excited to collaborate with healthcare professionals to deliver top-tier medical and rehabilitation facilities for the benefit of the local community.”

Transacted by Colliers Queensland agents Nick Wedge and Chris O’Driscoll on behalf of valued client, RAM Group, 6 Silvyn Steet Redcliffe is located adjacent to Redcliffe Hospital offering a convenient location for a medical asset.

Colliers Queensland Investment Services Director Nick Wedge said with over $616k per annum passing income the sale realised approximately 5.41% yield. Roughly half of the site is long term leased to Qscan until March 2032 and the balance land provides an opportunity for further development.

“The rise in demand for essential services in recent years, such as medical centre assets will continue due to the increased resilience to economic conditions,” Nick Wedge said.

Colliers Healthcare and Retirement Living National Director Chris O’Driscoll said the medical sector remained one of the most buoyant sectors in commercial property. Ongoing government investments in healthcare have been instrumental in driving the expansion of the sector, solidifying it as a reliable and secure source of income.

“The surge in population has fuelled the demand for medical centres, strengthening the position as a viable investment opportunity,” Chris O’Driscoll said.

“The involvement of active institutional investors in a low interest rate environment has resulted in medical and healthcare facilities in Queensland achieving record breaking sales in past years, including major portfolio transactions, with total sales volume reaching nearly $479 million in 2022 and $500 million in 2021. “This off-market sale saw a great result for both the seller and the purchaser in a strong performing sector,” Chris O’Driscoll added.

Commenting on the transaction, Matthew Strotton, RAM’s Executive Director and Head of Real Estate, said, “The sale of the Redcliffe asset above book value underscores RAM’s strategic expertise in healthcare asset management and value creation. We congratulate the Colliers team for their exceptional work on facilitating this off-market transaction and achieving a successful outcome for all parties involved.”