The Geelong Private Medical Centre has recently hit the market under instructions from KPMG's Guy Edwards and Darren Lewis,
CBRE’s Victorian Health, Aged & Child Care team of Julian White, Scott Orchard, Sandro Peluso and Kiran Pillai have been appointed to manage the sale – which represents one of the more significant assets in the Victorian health sector to be publically marketed in 2016.
Located in the Geelong CBD at 73-79 Little Ryrie Street, the modern four-storey medical centre comprises a total net lettable area of approximately 4,937sqm, with secure undercover car park servicing 174 vehicles. The property is situated within Geelong’s medical precinct, with direct link to the Geelong Private Hospital via a pedestrian bridge. It is also neighbouring regional Victoria’s biggest hospital – Barwon Health.
The site currently comprises general practice, consulting rooms and administration offices, and is mostly occupied by leading private healthcare provider, Healthscope. The property has fully leased net income potential of approximately $1,813,000 per annum net.
Mr Orchard said the established lease to Australia’s second largest private hospital operator should encourage a competitive sales campaign, with a range of local, national and offshore buyers expected to vie for the site.
“Since its establishment in 1985, Healthscope has expanded to operate approximately 45 hospitals and 48 medical centres across Australia, with over 18,000 employees nationally. Therefore this strong covenant as the major occupier will give buyers confidence in the ongoing stability of the asset”.
"Geelong Private Medical Centre presents investors with a strategic opportunity in one of Victoria’s leading healthcare hubs, which will fuel consistent tenant interest in the building,” Mr Orchard said.
“The modern building, which was built around 2010, will offer strong depreciation benefits and lower capital expenditure costs than older properties, appealing strongly to investors particularly given the short supply of quality investment opportunities across several asset classes," Mr Peluso added.
The sale represents the latest in a series of CBRE transactions in the healthcare sphere recently, with ASX listed Primary Healthcare in Hawthorn, Diamond Dental in Wantirna South and South Eastern Animal Hospital in Clayton all transacting for strong results over the past few months.
The property is being offered to the market via an Expressions of Interest campaign closing 1st December 2016.
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