Vacant Burwood aged care and seniors living home sets new benchmark

A vacant Burwood aged care home has sold to an international owner occupier for $12,588,888, setting a new pricing benchmark for the asset class. 

The 8-18 Edward Street property occupies a 5,614sqm landholding and was previously operating as Trinity Aged Care with 45 beds and two adjoining residential properties. The sale price represents a rate per bed of $280,000. 

The property has an existing Development Approval for a new 110 bed aged care facility; however, the international buyer plans to utilise the existing improvements for a supported residential services facility focusing on NDIS participants.

CBRE’s Australian Healthcare and Social Infrastructure team of Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat brokered the deal. 

“International investment activity is once again surging across Australia, despite commentary surrounding funding challenges,” Mr Tat said.

“Since China’s borders re-opened, we have seen high demand for larger commercial investments, with our team handling a number of highly liquid Asian investment mandates.” 

The property attracted numerous buyer profiles and while the purchaser is focused on both NDIS and supported residential services, underbidders were linked to healthcare and day hospitals, other NDIS services and aged care. 

Mr Caspani Muto added, “The transaction was made slightly more complex by the inclusion and transfer of the existing aged care company via a share sale arrangement. As the company was an approved provider and held 45 active bed licenses, this added an additional value to the property.” 

In addition to the 8-18 Edward Street transaction, CBRE has been involved in a range of other recent vacant aged care sales: