This article is from the Australian Property Journal archive
AN aged care provider has bought a Brighton East respite facility from not-for-profit group Benetas for $19 million.
The sale price is a 75% increase on the reserve price of $11 million.
Savills agents Clinton Baxter, Julian Heatherich and Jesse Radisich sold the property at 68-76 Union St Brighton East.
It was surplus to Benetas’ needs.
The 5,751sqm site is zoned neighbourhood residential and also lends itself to townhouse development potential.
Baxter said the ageing baby boomer population was driving a robust market for aged care facilities and properties, which could provide development opportunities in the sector.
He added that 10 offers were received from both local and offshore townhouse and aged care developers with the sale coming down to an “intense” contest between three leading aged care providers.
“Competition between these parties has pushed the price well beyond the vendor’s expectations and in the process achieved a record land sale rate of $3,300 a square metre for a large bayside property,” Baxter said. “The most significant driver has been the growing demand from the cashed-up Baby Boomer generation and that is only going to continue as more of that generation reach retirement and beyond,”
Heatherich said the latest research from Leading Age Services Australia suggested $60,000 more residential care places were needed, along with infrastructure investment of $30 billion by 2025.
LASA forecasts the percentage of people aged over 65 to increase by 18% over the next five years, and of people aged over 85 to increase from 1% to 5% over the next 35 years.
Radisich said there was enormous demand from the aged care sector for major sites in middle ring suburbs across Melbourne.
m3property consulted the vendor.
Australian Property Journal
