Portfolio of three care-related properties sells for $11.2m

A portfolio of three South Sydney suburban care assets has sold for a total of more than $11 million following strong buyer demand in the post COVID environment.

The three assets included:

  • โ€œ9A Griffin Avenueโ€, Bexley, known as Griffin House โ€“ A tenanted two-storey residential dwelling on a 548sqm site, which has been refurbished to accommodate participants under the National Disability Insurance Scheme (NDIS).
  • 1-5 Verdun Street, Bexley – An existing three-level vacant purpose-built 111 bed licensed aged care facility in South Sydney with over 65 rooms on a 2,733sq m site.
  • 34 Bayview Street, Arncliffe โ€“ A two-storey 33 aged care room facility past its useful life, on a 1,250sq m site with redevelopment potential. Development approval obtained to carry out build works to provide Specialist Disability Accommodation.

The three assets across titles were sold following an Expressions of Interest campaign run by Knight Frank agents Mark Litwin and Anthony Pirrottina acting under instructions from Phil Carter and Daniel Walley of PwC as Receivers and Managers.

The total sale price was $11.2 million, with the portfolio purchased by a local private investor.

The Bexley properties at Griffin Avenue and Verdun Street are neighbouring, and despite being on one title were pursued by the market as two distinct opportunities.

โ€œStrategically positioned close to the Kogarah Train Station, and localised shops and services, Griffin House presents as an excellent opportunity to invest in a funded mechanism with strong underlying land value,โ€ said Mr Litwin.

โ€œThe asset offers exceptional location fundamentals that services the day-to-day needs of residents, being close to amenities as well as the St George Public and Private Medical Precinct.

โ€œIt also has a range of potential high-value uses permissible within the existing R2 Zoning including a childcare centre, educational establishments, health consulting rooms, seniors housing and places of public worship.โ€

Mr Litwin said the purpose-built aged care asset at Verdun Street was in excellent condition with contemporary operating features including on-site laundry, staff parking, and loading areas.

โ€œRecently renovated, this asset is strategically positioned close to the nearby medical precinct of St George private and public hospitals, with proximity Kogarah Station and Kogarah Town Centre shops and services,โ€ he said.

โ€œThis asset had the potential to consolidate with Griffin House to add rooms and increase operational efficiencies, and also has potential reuses, just like its neighbour.

โ€œThe site is well positioned in a valuable underlying corner landholding with triple street frontages and multiple points of access and egress via Verdun Street and Griffin Avenue.โ€

Mr Pirrottina said the Arncliffe property was the site of a two-storey former residential aged care facility constructed circa 1970s, and consisted of small private rooms and multi bedded rooms, communal lounge, dining rooms, kitchen, laundry and staff areas.

โ€œThis purpose-built aged care facility has since been converted and used for the purpose of a Supported Independent Living group home, but the improvements are ripe for renovation, refurbishment or repositioning with potential to convert to alternative uses,โ€ he said.

โ€œDevelopment approval has been obtained to carry out build works to provide Specialist Disability Accommodation, but as yet no work has been undertaken.

โ€œUnderpinned by high-value planning controls and a flexible R3 Medium Density Residential zoning, the land lends itself well to the existing aged care improvements, adaptive re-use, or new development.

โ€œAdditional potential development uses include townhouses, childcare, boarding houses and duplex homes.โ€

The Arncliffe property is close to the Banksia Train Station, bus stops and retail village.

Mr Litwin said care-related properties had proven to be resilient investments over the past few years, both during and after the pandemic.

โ€œWith government funding underpinning many care assets through various funding mechanisms, as well as an ageing population, they will continue to perform well and be in high demand.

โ€œThere is aggressive capital seeking alternate asset classes for diversification, as well as strong returns, and care-related assets also provide the socially conscious investors with another benefit.

โ€œThis is an increasingly emerging market that will continue to grow and attract the attention of investors.

โ€œAssets that offer both secure income as well as reuse or redevelopment opportunities will be particularly sought after.โ€

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