Next Gen Doncaster changes hands for $24.65 million

Next Generation Clubs Australia has sold its 10,950sqm health and wellness facility in Doncaster to a local private investor for $24.65 million.

CBRE’s Jamie Hess, Sam Guest and JJ Heng exclusively managed the sale process with the price reflecting an initial yield of 6.49%.

The deal was structured as a sale and leaseback, ensuring NextGen Clubs will continue to operate its purpose-built health and wellness club at the site until 2040, with options until 2060.

The buyer intends for the health and wellness club to continue its operations uninterrupted under NextGen Clubs.

Mr Hess noted the Expressions of Interest process generated over 150 enquiries and more than 30 inspections from funds, local and international investors. Twelve formal offers were received with investors attracted to the substantial landholding and security of income and tenure from the lease structure. 

“The campaign reinforced the strong investor appetite for secure assets backed by triple net leases which are becoming extremely rare in today’s market. With significant capital ready to be deployed, improving market conditions, and limited stock in Victoria, we delivered a strong result for our vendor and purchaser,” Mr Hess added.

Located at 21 Members Drive, NextGen Clubs officially opened their Doncaster facility in 2021, following the completion of the purpose-built health and lifestyle club on Mirvac’s Tullamore site.

“Given the sale and lease back structure, it was paramount to make sure the prospective purchaser understood the key business fundamentals of Next Generation Clubs, not only Doncaster but the whole business. Our team created a strategic approach to navigate the complexities of the transactions to ensure we delivered a competitive campaign,” Mr Guest added.