Manningham Medical Centre sold for $45 million

Manningham Medical Centre, east Melbourne’s most popular healthcare hub has sold to a local private family investor for $45 million, marking the largest sale of its kind in Australia since 2021. 

Located at 200 High Street, Templestowe Lower, the medical centre was completed in the early 2000s and has since undergone refurbishment with tenancy expansions and new fit outs.  

The 5,000sqm six-storey centre has a gross passing income of $2,900,000 from a mix of anchor tenancies including a general practice, Nexus Day Hospitals, Sonic Healthcare and Capital Radiology.  

CBRE’s Australian Healthcare & Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat brokered the strata sale, reflecting a passing yield of circa 6.4%. 

“The Victorian healthcare investment market has been starved of high-quality opportunities for a number of years. Our team has seen the lion's share of notable medical assets being transacted across QLD, WA and SA since 2020 so it was not springing that this property was well contested,” Mr Peluso said. 

“There are several established intuitional level buyers across the healthcare market, however, the number of traditional core funds now transitioning toward social infrastructure real estate should not be underestimated both domestically and internationally.” 

Mr Tat added, “The volume of private money in the market is as significant as what we have seen from international buyers. We are assisting several traditional REITs across Singapore and Japan with their due diligence into Australian social infrastructure-related investments. A number of these groups have started competing in our sales campaigns and we expect this to increase further as we enter 2024.”