Mr Peluso said the sale of 26-28 Chesterville Road, Cheltenham, exemplified the strong demand for medical investments, regardless of the nation’s political environment.
The property was sold by global healthcare business Fresenuis Medical Care, with an existing lease to Cura Group, Australia’s leading day hospital provider.
“Investors at all price points are gravitating towards the stability of the healthcare sector, and this property was no exception – attracting interest from a number of high net worth privates, in addition to larger medical funds,” Mr Peluso said.
“Following the Coalition’s election win, $29.1 billion in hospital funding is being forecast by 2024-25, clearly demonstrating to a number of buyers that this is a sector which will be supported into the future.”
Mr Twelftree noted that boardroom auctions remained a niche sales method, compared to standard on-site sales and Expression of Interest campaigns.
”We had a number of requests to view the auction by medical professionals and investors across the globe, which is why we chose to make the auction available via live stream – maximising the price for our client,” Mr Twelftree said.
The auction was the first of its kind in Victoria from a commercial agency standpoint, with live online bidding available in addition to standard streaming – previously, bidding has exclusively taken place over the phone.
CBRE partnered with Anywhere Auctions, enabling investors to participate in the auction from anywhere in the world.
The 1,172sqm Chesterville Day Hospital is General Residential zoned and approved for multiple medical practitioners. It features a 551sqm building area with a new fit out and 17 on-site car bays.
The established facility generates a net annual income of $282,487 per annum, plus outgoings and GST, and was leased on a ten-year term, with the option to extend for a further ten years.
The tenant, Cura Group, is one of Australia’s leading providers of day hospital facilities, with 22 national locations.
The group maintains modern, well-equipped facilities and employs a highly experienced management team.
Positioned directly opposite Westfield Southland Shopping Centre and within walking distance of Southland railway station, Chesterville Day Hospital benefits from exposure to over 6,400 vehicles per day.
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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.