Stonebridge Property Group has sold and settled a medical clinic near Geelong, regional Victoria to Australian Unity for $9.5m
Located on the corner of Bacchus Marsh Road and Cox Road in Corio, the 1,324 sqm building includes several purpose-built facilities, with a head lease over most of the asset to Better Medical. The asset also included 74 car spaces together with three (3) adjoining residential houses. Following an Expression of Interest campaign, Australian Unity has surfaced as the successful buyer of the entire parcel. The sale was recently announced to shareholder last Friday – 15 July 2022.
Stonebridge Partner’s Rorey James and Kevin Tong exclusively handled the campaign, which saw strong participation from private and institutional groups across the country.
“The passing and fully leased yields are a reflection of the substantial demand and confidence the market has in the medical sector. local and offshore investors continue to chase ‘essential services’ style investments, with medical, a product that has long been an investor favorite, based on recession-proof non-discretionary-spend tenancy profiles and long leases to blue chip tenants.” Stonebridge’s Rorey James said.
Over the past 12 months, Stonebridge have noted a major increase in buyer demand from Melbourne, Sydney and Tasmania towards regional Victoria.
Stonebridge’s Kevin Tong said that “buyers were attracted to the better returns on offer (generally) and 50% stamp duty savings. however, they also have a great deal of confidence in regional areas off the back of the pandemic and more people now living permanently there. We understand that more than half the people who moved away from Melbourne during the pandemic into regional areas have not returned, that is a very telling story.”
“The other reason for an increase is due to a lack of good quality opportunities / supply in Melbourne, forcing buyers to look elsewhere for their commercial property requirements.” added Mr James.
The Corio Medical Clinic follows several other medical sales that Stonebridge have transacted, including the Latrobe Community Health in Warragul for $9.35m (4.8% strata titled), and the Canterbury Medical Centre for $3.4m (2.6% yield), both sold earlier this year.
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