This article is from the Australian Property Journal archive
THE former Beacon Theatre building in Fremantle, which has been reborn as a medical centre, has sold for $9.1 million.
The two-storey property at 91 Hampton Road, now the Ellen Health Medical Centre, consists of a 1,131 sqm building on a 1,508 sqm site at the corner of Wray Avenue.
Knight Frank agents Cory Dell’Olio, Tony Delich and Sam Biggins managed the expressions of interest campaign on behalf of a private vendor.
The character building dates back to 1937 and operated as the Beacon Theatre before having other uses including a supermarket. In 2014 it was renovated to be used as a medical centre and was decorated with a Commendation from the City of Fremantle for the works. They included a roof replacement, new windows to replicate heritage requirements, installation of a new medical lift and shaft and 700 sqm of alterations to the internal footprint which included new internal walls, ceilings and bathrooms and works to a new car park.
Major occupants include Brecken Health, APM Group and 777 Pharmacy. There are retail and medical tenants on both levels, also including Lifecare Physio (owned by APM Group), Touch Therapy Massage, Café on Hampton and Ellen Street Family Medical Practice (owned by Brecken Health).
Net rental income totals $615,192 per annum, and the property has a weighted average lease expiry of 4.1 years based on income.
Dell’Olio said asset’s solid fundamentals and strong tenant covenant appealed to buyers, with enquiry coming from both local and interstate buyers resulting in four offers.
The medical centre benefits from a wide clientele base, being close to White Gum Valley, Beaconsfield and Hilton.
“We have seen several quality healthcare assets change hands in recent months, with investors increasingly attracted to this sector due to strong demand, appealing lease terms, defensive attributes and a favourable risk-adjusted return profile,” Biggins said.
