A Hong Kong-based investor has purchased a medical site 25 kilometres east of Melbourne’s CBD for $5 million, in the latest show of strength in the growing healthcare sector.
Urban Growth Zoning, at 169-171 Stud Road in Wantirna, is comprised of two buildings with five current healthcare tenants including physiotherapist, dentist and rehabilitation services.
Providing a passing income of $220,000 per annum, the 1,630 sqm property drew considerable interest, particularly from the Asian market.
The property was purchased via a successful expressions of interest campaign coordinated by CBRE’s Australian Healthcare and Social Infrastructure team of Jimmy Tat, Sandro Peluso, Marcello Caspani-Muto and Josh Twelftree.
CBRE’s Jimmy Tat said that the sale of the healthcare asset underlines the growing confidence in the medical investment sector despite the challenging climate.
“We are seeing more investors gravitate towards healthcare as an asset class due to its relative security given our ageing population and the increasing demand for medical service nationally,” he said.
Evidencing this, there was significant interest in this Stud Road medical precinct, with nine competitive bidders – six of which were local and the other three Asia-based.Jimmy Tat – CBRE
The transaction marks the second significant healthcare sale in Wantirna in recent months, following the $4 million deal for 230 Mountain Highway in August as market confidence grows heading into the summer months.
“The reopening of the Victorian economy, coupled with the general stabilising of the wider Australian economy, is helping to reignite confidence in commercial real estate, with many investors looking for premium location assets and strong lease covenants,” Mr Tat.
Mr Peluso added that the security offered by medical assets was the reason behind the recent healthcare boom.
“Even in the middle of a pandemic it is proving to be a stable income-producing asset class,” he explained.
Healthcare property investors are less likely to feel the pressure of rental relief or long-term vacancies than traditional asset classes, which is a priority consideration for many investors.Sandro Peluso – CBRE