This article is from the Australian Property Journal archive
A SOCIAL infrastructure investor has nabbed a purpose-built residential healthcare complex for essential workers at Bendigo Hospital in a $35 million-plus deal.
The asset comprises 120 apartments across 11 three-storey buildings and is fully leased to state government entity Bendigo Health Care Group until March 2044.
Colliers agents Rob Joyes and Travis Hurst managed the sale of 10 Atkins Street in North Bendigo on behalf of New Zealand-based Morrison, which bought the asset in 2016.
“The secure lease term of 19.46 years was appealing for several bidding parties,” the agents said, adding that the property attracted private investors, listed residential funds, listed healthcare funds, listed social infrastructure funds, and high-profile syndicators.
Bendigo Health Care Group manages the primary public sector functions of Bendigo Hospital, providing the asset with a AA-rated state government covenant and a stabilised triple net long-term income stream. The passing yield came in at 6.2%.
“The property is strategically located just 500 metres from Bendigo Hospital, the main public hospital for Bendigo and the primary healthcare asset for the Loddon Mallee Region, which includes Mildura, Echuca, Swan Hill, Kyneton, and Castlemaine,” Joyes said.
Bendigo, located in north-central Victoria, around 150 kilometres north-west of Melbourne, has grown its population to more than 124,000.
Hurst said Bendigo, Victoria’s third-largest key regional hub, continues to attract strong residential demand due to its appealing lifestyle, affordability compared to Melbourne, and well-developed infrastructure and strong regional economy.
Bendigo has several future developments planned to accommodate its growing population and enhance its infrastructure. The City of Greater Bendigo has adopted a Managed Growth Strategy to guide residential growth over the next 30 years, aiming to provide clear guidance on housing growth, focusing on directing more housing to areas close to existing services, community infrastructure, transport, and job opportunities.
