This article is from the Australian Property Journal archive
INVESTORS have spent nearly $24 million on medical and health centres, distribution centres, and a bank branch at a portfolio auction event held in Melbourne yesterday.
The tally took the total spend at Burgess Rawson’s first portfolio event for 2024 to $66.79 million following Tuesday’s event in Sydney that netted $43 million.
The clearance rate across the two days was 70.8%.
Burgess Rawson CEO, Ingrid Filmer said demand for healthcare was particularly strong with these assets attracting multiple bidders and strong results.
St John of God sold its distribution centre at 33 Grandlee Drive in Wendouree for $3.93 million, reflecting a yield of 5.54%. The property was built and occupied by St John of God in 2007 and they sold the property with a seven-year leaseback returning an initial net annual rental of $220,000.
The St Kilda Day Hospital and St Kilda South Medical Centre, located in Dickens Street, Elwood, in Melbourne’s south east bayside region, sold under the hammer for $5.701 million reflecting a yield of 7.74%. The property comprises two well-presented medical buildings totalling 418 sqm securely leased to the international not-for-profit group, MSI as well as the St Kilda South Medical Centre, which has been in operation since 1986.
Further south, an ANZ bank branch in Hampton East sold for $3,251,000 with a new 4.5-year plus options. The return was 5.12%.
Assets located in South Australia were highly contested, with investors lured to the competitive conditions of the state which include not having to pay stamp duty on commercial assets.
The property leased to PFD Foods in Whyalla sold for $$1.16 million on a yield of 6.3% while an asset leased to Novita Services in Kadina sold for $1.63 million.
The Aboriginal Drug and Alcohol Council in Port Augusta also sold for $620,000 reflecting a yield of 6.36%.
The Sydney event was headlined by the $14.2 million sale of a medical centre in Port Macquarie, on a 5.98% yield. Lumus Imaging, a subsidiary of ASX-listed Healius Ltd, has a 15-year lease to 2034 with options over the 1,084 sqm purpose-built facility.
Also selling was a Reece outlet in Batt Street, Jamisontown, in Sydney’s outer west, for an $13.25 million. Offered with a brand-new 10-year lease to 2034, the 2,433 sqm showroom and warehouse building traded on a 5.13% return.
