Geelong Private Medical Centre has been listed for sale, representing one of the most significant sub-$50 million Victorian health sector assets to be publicly marketed since 2018.
CBRE’s Healthcare & Social infrastructure team of Jimmy Tat, Sandro Peluso, Josh Twelftree and Marcello Caspani-Muto have been exclusively appointed to market the 10-year-old centre.
Over four floors, 73-79 Little Ryrie Street, Geelong, contains 4,937sqm of lettable area with an airbridge on the third floor connecting it to Geelong Private Hospital – with Barwon Health’s University Hospital Geelong, formerly Geelong Hospital and one of regional Victoria’s biggest health complexes, next door to Geelong Private.
Geelong Medical Centre also includes a multi-level basement car park which, combined with the at-grade bays, can accommodate 174 vehicles.
The agency puts potential annual net rent income at $2.25 million.
CBRE director Healthcare & Social infrastructure, Mr Peluso, said; “Healthcare investments are sought after for their low levels of risk during exposure to market downturns and recessions.”
“In the midst of COVID-19, the healthcare sector has arguably been one of the stronger performing sectors, showing returns of between 4-6% and the trend is likely to continue in 2020.”
Mr Tat added that; “The existing covenants with many of Australia’s largest medical and healthcare operators, coupled with the lack of quality blue chip assets on the market, should encourage a competitive sales campaign with a range of local, national and offshore buyers expected to vie for the site.”
“The youth of the building, which will allow for more depreciation benefits and lower expected capital expenditure cost when compared to older properties, is expected to appeal strongly to investors – particularly given the short supply of quality investment opportunities across several asset classes,” the agent said.
“Geelong Private Medical Centre presents investors with a strategic opportunity in one of Victoria’s leading healthcare hubs that will fuel consistent tenant interest in the building.”
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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
