Caulfield North healthcare asset sells at record land rate
The CBRE Victorian Health, Aged and Childcare team has successfully transacted a Caulfield medical asset for $4,825,000, achieving a record land rate for the area.
10 May 2018
73 Kooyang Road is a freehold medical investment owned by renowned Australian neurosurgeon, spinal surgeon and researcher Professor Richard Bittar and is fully leased to Precision Brain, Spine and Pain Centre for 10 years. The auction for the 503 sqm site was strongly contested and demonstrates that demand for medical and healthcare assets by astute investors is a highly desirable asset class in the eyes of investors.
Transacting on a record land rate of $9,600 per sqm for a Commercial 1 Zoned property, 73 Kooyong Road represents a 40% uplift on a recent sale of a Balaclava Road property which sold for $5,900 per sqm in September 2017.
The CBRE Victorian Health, Aged and Childcare sales team comprising Sandro Peluso, Bianca Butterworth, Kinson Wong and Josh Twelftree, alongside Auctioneer Paul Tzamalis of ‘The Auction Company’, were pleased with the outcome and their ability to deliver a strong result for the vendors.
Mr Wong said competitive bidding was no surprise given the substantial levels of enquiry generated over the course of the campaign, with the final result reflecting a strong building rate of $7,300 per sqm.
“Despite current capital control measures in place across Asia, 73 Kooyong Road, Caulfield North was sold to an Asian buyer in what was their first medical investment,” Mr Wong said.
“We are very active in educating new and existing buyers of the favorable nature of medical and health assets.”
“We are finding that buyers are either looking to divest their portfolio and are looking more closely at the medical market, as well as first-time investors attracted to the sub $5m price point and looking to secure their first investments in asset classes that offer growth, tenure and stability,” said CBRE Director, Mr Sandro Peluso.
Mr Twelftree added; “We received strong enquiry on this asset with more assets of this nature to come to market this year which we would equally expect to be highly sought-after.”
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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 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.