With 98% of residential aged care facilities owner-occupied in Australia, the upcoming sale of a freehold nursing home in Melton presents a rare opportunity to secure a standalone aged care investment and is expected to fetch over $8 million.
The 5,157sqm offering features a passing annual income of $528,295 and, with 60 beds on offer, provides a mixture of low, high and respite care.
The aged care facility is tenanted by Willowbrae Residential Aged Care, which was founded in 1988 and is privately owned and operated.
Mario Abbotto of Verraty Pty Ltd, owner of the Richmond Football Club’s Wantirna complex and several other landholdings, and Lucky Tzirkas of De Nova Group, a property development company that specialises in aged care, hotel, gaming and child care facilities, are among several stakeholders divesting the asset.
Mr Peluso said the listing was expected to generate strong interest from an array of private investors and institutional groups, given freehold aged care offerings are incredibly scarce in today’s investment market.
“This property shares a number of attributes with traditional healthcare offerings and is underpinned by the same positive demographics. Most notably, the country’s growing and ageing population – reflected in Melton’s forecast population growth of 194% by 2051,” Mr Peluso said.
Mr Twelftree added that Willowbrae’s history in the local area and reputation for quality would offer potential buyers strong income security.
“Featuring superior design and construction and a floor plan that is reflective of the country’s newest and highest quality aged care facilities, the facility is positioned for long-term success,” Mr Twelftree said.
116-156 Centenary Avenue will be sold via an exclusive boardroom auction with live online bidding, enabling investors to participate in the auction from anywhere in the world, on Thursday, 5 September, from 2pm (AEST).
This online auction closely follows the success of CBRE’s inaugural use of live-stream bidding to sell 26-28 Chesterville Road, Cheltenham, which transacted for $5.52 million on a yield of circa 5%.
For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.