This article is from the Australian Property Journal archive
PROPERTY investment company Region Amber has listed a former Bupa aged care facility in Melbourne’s east for sale, with a price expectation of circa $14 million.
The 296-302 Springvale Road site in Donvale spans 18,224 sqm site has a 6,600 sqm two-storey facility with 115 beds that Bupa operated until July last year.
CBRE’s Marcello Caspani-Muto, Sandro Peluso and Jimmy Tat are managing the sale via an Expression of Interest campaign closing September 6, 2023.
“Due to the land space, future investors or occupiers have the opportunity to expand and value add with alternative uses such as retirement living, healthcare, NDIS or accommodation,” Caspani-Muto said.
He said the volume of vacant seniors living and healthcare assets nationally continues to climb.
“In 2022, we saw record volumes of transactional activity and we are on-track to surpass this in 2023.”
He added there has been strong activity across the Victorian market and heightened levels of opportunity across the Queensland metropolitan markets, with a flow-on effect across NSW now being seen.
Peluso said the popularity of vacant retirement and aged care assets is “comfortably” at record levels.
“Broader challenges with rising construction costs across the commercial and residential markets have acted as a catalyst for demand in this sector which is very well documented.”
“With development risk and construction costs at an all-time high, securing large landholdings with significant existing improvements is highly compelling for operators and investors.”
Recent vacant aged care home sales included the $12,588,888 purchase of a facility in eastern suburb Burwood in which the buyer planned to utilise the existing improvements for a supported residential services facility focusing on NDIS participants, while the Queensland government has just paid $4.1 million for a Rothwell building to deliver temporary accommodation to people in need of housing.
In Sydney, a portfolio of three suburban southern suburbs assets sold for $11.2 million to a local private investor. That included Griffin House, a home purpose-built to accommodate NDIS participants, in addition to two vacant purpose-built aged care facilities, one of which includes a DA for conversion into a Supported Independent Living Group Home.
