Vacant Renovated Seniors Living Home In Melbourne’s Prestigious City of Stonington Likely Expected To Poise Occupier and Investor Interest

14 June 2024

Victoria, Australia –June 14, 2024 – A former Aged Care home that was recently renovated to accommodate NDIS usage will be offered to the market with vacant possession. The home which was run as an Aged Care by Estia Health until late 2021 feature 60 single rooms of which are all en-suited and substantial main road exposure.

241 Dandenong Road, Windsor is only located about 7km* from the Melbourne CBD and reflects one of the highest quality vacant offerings in the sector over the past few years. The offering continues a strong run of opportunities across the vacant aged care market since 2020 by CBRE national healthcare and social infrastructure business who do acknowledge the supply is beginning to curtail.

CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat are running the Expressions of Interest campaign on behalf of the private ownership group.

Sandro Peluso said “Off the back of continual record breaking years by sales volume in the vacant seniors living space during 2022 and 2023 there is no questions the volume of opportunities has begun to reduce. This was always inevitable, particularly in an environment were existing improvements are more valuable than ever. Many aged care and retirement providers are re-considering divestment in favour of wholesale refurbishments as new build are still not feasible in most scenarios. This reduced volume does however make quality assets of this nature more valuable than ever before.

“In this scenario, the underlying land value is worth north of $8,000,000 and potentially even over $10,000,000. There is a real lack of comparable sales for land of this size in the area given how tightly held assets within Stonnington are. Couple that with a building of circa 60 beds that requires minimal maintenance and refurbishment work and the purchase proposition is highly compelling.”

Marcello Caspani-Muto added “Most aged care operators and lenders our team have spoken with over the past 6 months are happy with the trajectory of funding improvements and profitable within the space. While substantially more improvement is required, it’s clearly the best time to be a provider within the space for 5+ years. This is resulting in more providers once again considering acquisitions or development activity given the substantial shortfall of supply across the sector. We are not far off seeing average occupancy exceeding 95% in our teams view. This will likely drive demand from Aged Care and Seniors living providers alike.”

241 Dandenong Road, Windsor will be sold via Expressions of Interest publicly launching in 1-2 weeks’ time with a close date of mid-July.