Rare 99-Year Ground Lease Healthcare Asset Sells in Sub-$15 Million Transaction

A sub-$15 million deal has been completed for 159 Scoresby Road, Boronia, trading as Melbourne Eastern Healthcare, representing one of the few significant ground lease healthcare transactions completed across Australia’s medical property market in recent years.

The Melbourne Eastern Healthcare Village sale represents one of only a handful of major ground lease transactions across Australia’s medical property market

CBRE Australian Healthcare & Social Infrastructure’s Sandro Peluso, Marcello Caspani-Muto, Jimmy Tat and Kai Wang negotiated the transaction following a campaign that demonstrated investors’ willingness to look beyond traditional freehold ownership where the underlying healthcare fundamentals and tenure structure remain compelling.

The property comprises a 2,327sqm multi-tenanted medical hub across 14 tenancies, anchored by a diverse healthcare ecosystem including Capital Radiology, Doctors Care Clinic, Vision Eye Institute, Boronia Specialist Suites and Australian Clinical Labs.

The centre is collocated with Melbourne Eastern Private Hospital, a 60-bed rehabilitation and medical facility operated by Macquarie Health, further strengthening its position within an established healthcare precinct.

CBRE National Director Sandro Peluso said the transaction demonstrated that sophisticated healthcare property buyers were prepared to look beyond conventional tenure structures where the underlying investment fundamentals remained strong.

“Ground lease healthcare transactions of this scale are exceptionally rare in Australia, which made the structure of this asset one of the most interesting elements of the campaign.

“Rather than allowing the ground lease to be viewed as a limitation, we focused on the substantial remaining tenure, the strength and diversity of the healthcare income and, importantly, the right of first and last refusal over the underlying freehold.

“The result demonstrates that a well-performing, strongly tenanted medical hub can attract significant buyer interest even without a conventional freehold title.”

CBRE Director Marcello Caspani-Muto said the campaign reinforced the increasing sophistication of capital targeting Australian healthcare real estate.

“This transaction challenges the assumption that healthcare investors will only aggressively pursue conventional freehold opportunities.

“What ultimately mattered was the quality of the healthcare ecosystem operating from the property – radiology, general practice, ophthalmology, pathology and specialist services – together with its position adjoining an established private hospital.

“Those complementary uses create an ecosystem where healthcare providers can benefit from referral networks and established patient activity. When those fundamentals are combined with long-duration tenure, investors are increasingly prepared to look beyond the mechanics of the title.”

The transaction comes as demographic trends continue to support long-term demand for healthcare services across Melbourne’s eastern suburbs, with population growth and an ageing demographic expected to drive increased utilisation of medical, diagnostic and specialist healthcare services.

Mr Peluso said the transaction was another example of investors becoming increasingly discerning about the underlying operational fundamentals of healthcare real estate.

“Healthcare property isn’t a single investment category anymore. Investors are increasingly differentiating between assets based on location, operator mix, lease structure, referral networks and the long-term relevance of the healthcare services being delivered.

“Melbourne Eastern Healthcare brought those fundamentals together in a structure rarely offered to the Australian market, and the competitive response demonstrated that buyers understood the opportunity.”

The sale of 159 Scoresby Road, Boronia adds to a growing number of healthcare transactions completed by CBRE’s Australian Healthcare & Social Infrastructure team nationally during 2026.