Melbourne, 12 May 2016 – A fully refurbished Frankston aged care facility has recently sold for $5.05 million, as buyers more actively target this sector to meet the needs of Australia’s aging population.
CBRE’s Metropolitan Sales team of Josh Twelftree, Scott Orchard and Josh Rutman negotiated the sale of the 45 bed facility, which was offered to the market with vacant possession. The property was located at 382-384 Nepean Highway, Frankston on a large landholding of 3,759sqm.
Mr Twelftree said the property was snapped up by an owner occupier, following a competitive Expressions of Interest campaign which drew significant interest from a strong contingent of owner occupiers, investors, developers and aged care operators.
“The opportunity to acquire an aged care asset was a key selling factor, with investors gaining confidence in the sector due to the projected future growth of Australia's elderly population – with individuals over 65 years predicted to increase from 2.5 million in 2002 to 4.2 million in 2021.”
“Despite the site presenting a number of challenges - including existing improvements inhibiting immediate development potential, the location and vacant possession status - we were able to give confidence to buyers surrounding the scope of the recent refurbishments and strong demand for this asset class in the locale,” Mr Orchard added.
CBRE indicated they have been involved in a series of recent sales to aged care providers in recent months, who have outbid developers and investors. This trend is further underpinning continued strong demand in the sector.
Australia currently has approximately 2,800 residential aged care facilities providing care to more than 160,000 elderly people. Over the next ten years, the number of residents is projected to reach more than 250,000.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.