Melbourne healthcare facilities sell in new auction

Two healthcare facilities in Melbourne have been purchased by high-net-worth private investors, in Australia’s first auction event dedicated to the sector. 

CBRE’s maiden Healthcare & Childcare Portfolio Auction was held in Melbourne on August 24, with properties in Sydenham and Montrose changing hands following competition from multiple bidders.  

A domestic investor purchased 530-532 Melton Highway, Sydenham, in Melbourne’s north-west, for $2.345m. 

With the 339sqm building occupied by Capital Radiology on a five-year lease with an additional five-year option, the sale price reflects a yield of 5.07%.  

Across the city in the eastern suburbs, 10 Leith Road, Montrose, was purchased by another domestic investor for $1.82m. 

That 252sqm building is occupied by Sia Medical on a seven-year lease with two five-year options, with the sale price reflecting a yield of 5.5%.  

CBRE’s Sandro Peluso, Jimmy Tat, Marcello Caspani-Muto, Harry Einarson and Mitch Curnow developed and managed the auction event. 

“The auction was a great success, especially against the backdrop of the struggles many in the broader market are facing trying to sell,” Mr Peluso said. 

“We had more than 15 parties in the room, including interest from Queensland and New South Wales, and we’ve received great feedback on the concept.” 

A third property in the auction event, 90 Henley Beach Road in Mile End in Adelaide, passed in and remains under offer.