This article is from the Australian Property Journal archive
A PORTFOLIO of 10 dental clinics across Sydney, regional NSW and Tasmania has been put up for sale for investors looking to sink their teeth into the commercial market.
The Experteeth office, retail and warehousing portfolio also includes a laboratory and dental supply company, as well as a graduate program.
Properties are located in Chatswood, Eastwood and Roseville in metro Sydney, Coonabarabran, Dubbo, Narrabri in regional NSW, and Burnie and Deloraine in Tasmania.
The defensive investment offers 3.5% annual rent increase and a 10-plus-five-plus-five-year essential service covenant, with the fully leased net yearly income approximately $722,000.
Colliers’ John McCann, Andrew Bui, Tom Appleby and James Mullin have the listing.
“During a period of volatility across the vast majority of Australia’s investment markets, premium investments such as medical have been an area of focus for many,” McCann noted.
“Typically secured by a strong tenant covenant on a long lease term, we have witnessed a surge in appetite for essential service assets which offer investors cash flow security and a return far greater than savings or idle cash in the bank.”
Bui said there has been overwhelming demand from local investors, self-managed super fund, syndicates and institutional grade investors seeking city, metropolitan and regional assets sub-$20 million as a result of the current economic environment, uncertainty and volatility throughout equity markets, and the investment fundamentals of high-performing medical investments have shown to be resilient and attractive.
“Medical properties have traditionally been safe commercial investments due to their expensive fit-outs and the tenant offering an essential service,” Appleby said.
“Adding alternative real estate investments to a portfolio provides additional opportunity to negotiate inflation and cash rate rises, given it is mainly driven by secular trends and is less cyclical, providing a potential risk averse hedge against inflation.
Expressions of interest close 15th November.
