A medical centre in Western Australia’s southwest has sold following a campaign that generated significant buyer interest.
The Vasse Medical Centre at 21 Napoleon Promenade in Vasse was purchased by WA-based syndicator Optimus Private Equity for $9.25 million in a deal negotiated by Sam Biggins, Cory Dell’Olio and Tony Delich of Knight Frank.
The property is a modern, high-performing GP and pharmacy-anchored medical asset that was built in 2017.
Situated on a 3,155sq m site, the medical centre has 1,557sq m of net lettable area across 11 tenancies, as well as 64 car parks.
It is located in the heart of Vasse Village, opposite the Bunbury Farmers Market Vasse and Coles supermarket, at the gateway to the Margaret River region in the City of Busselton, around 2.5 hours from Perth.
In addition to the pharmacy and GP operator Duchess@Vasse Medical, which has been operating in Busselton since 1987, the centre has a complementary mix of medical occupiers including a dental clinic, psychologists, physiotherapists and podiatrists.
Mr Biggins said the Vasse Medical Centre was well received by the market during the Expressions of Interest campaign, which yielded a competitive two-round bidding process.
“We are seeing solid investor demand in the market for well-located primary healthcare assets,” he said.
“This modern and high-performing centre attracted buyers due to the strength of its covenant, being tenanted by established healthcare providers across a complementary mix of medical subsectors and anchored by a GP that has been operating for nearly 40 years. The recent commitment by the Federal Govt. of over $12b in stimulus for the primary healthcare sector is accelerating investor interest in primary care-focussed real estate assets.’
Mr Dell’Olio said the asset’s high-exposure location in Vasse itself was also a drawcard for buyers.
“The property is located on Vasse’s main road, Napoleon Promenade, so it benefits from exposure to foot traffic, as well as an estimated two million vehicles passing by per year.
“Location was a key factor – being in Western Australia’s southwest region, the property is situated in a growth area, with a population boom being largely driven by improved connectivity to Busselton.”
The expansion of Busselton Airport, which now has direct flights from Melbourne and Sydney as well as to key WA mining hubs, in combination with key road upgrades including the new Bunbury Bypass, has led to significant growth in Busselton recently.
WA’s South West Region is projected to reach a population of 230,000 by 2026, equating to an 18.7% growth between 2022 to 2026.
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