This article is from the Australian Property Journal archive
A PRIVATE group looking for a static investment with future potential has picked up a Glen Waverley medical centre for $7.28 million, ahead of interstate and foreign parties.
Ray White Commercial’s Ryan Trickey and Ben Ainsworth handled the expressions of interest campaign for 242-244 Springvale Rd in Melbourne’s south-east.
Waverley Medical Centre has a 613 sqm building area and is on a 1,504 sqm corner site.
The established medical clinic has been operating for over 30 years and returns of $297,052 per annum plus GST and outgoings, with 3% annual increases.
“There was a huge amount of interest in this property with more than 120 enquiries during the campaign, with 20% coming from interstate and 10% international,” Trickey said.
The property was sold by a family consolidating their assets.
“With the redevelopment of The Glen to the tune of $500 million, and more than 500 new dwellings coming into the area, there’s much to look forward to for both commercial and retail traders,” Trickey said. “We had 14 groups miss out on the asset with eight groups competing at a strong level. It was then down to three groups pushing for the purchase around the eventual price.
The site is Zoned General Residential 8, with a Design and Development Overlay allowing for up development of up to four levels or 13.5 metres in height.
Trickey said there is currently a particular desire for medical precincts, with the good ones offering a great and stable cash flow, “but the wrong ones can be dangerous”.
Waverley Medical Centre adjoins the area’s medical precincts of Springvale Rd and High Street Rd, supporting a concentration of medical businesses that complement each other.
Ainsworth said the property’s location, centrally positioned in the Glen Waverley Commercial Activity Centre and a one-minute walk to The Glen, limited supply of stock and the ongoing growth of central Glen Waverley as a commercial and entertainment hub made the asset really appealing, as well as its proximity to the Glen Waverley train and bus terminal just moments away.
Last month, Germany-based Fresenius Medical Care offloaded the 551 sqm medical centre operated by Cura Group for $5.52 million. The 26-28 Chesterville Rd property encompasses 1,172 sqm and brings in $282,487 annually.
