This article is from the Australian Property Journal archive
A PORTFOLIO of three suburban South Sydney care-based assets has sold for $11.2 million to a local private investor.
The portfolio includes Griffin House, a home purpose-built to accommodate NDIS participants, in addition to two vacant purpose-built aged care facility, one of which includes a DA for conversion into a Supported Independent Living Group Home.
Mark Litwin and Anthony Pirrottina from Knight Frank managed the sale of the assets via an expressions of interest campaign, acting under instructions from Phil Carter and Daniel Walley of PwC as Receivers and Managers.
Griffin House, a tenanted two-storey home on a 548sqm site located at 9A Griffin Avenue and an existing three-level vacant purpose-built 111 bed licensed aged care facility with over 65 rooms on a 2,733sqm site at 1-5 Verdun Street, are both neighbouring locations in Bexley and were sold on one title, despite presenting two distinct opportunities.
“Strategically positioned close to the Kogarah Train Station, and localised shops and services, Griffin House presents as an excellent opportunity to invest in a funded mechanism with strong underlying land value,” said Litwin.
“The asset offers exceptional location fundamentals that services the day-to-day needs of residents, being close to amenities as well as the St George Public and Private Medical Precinct.”
Litwin also remarked on Griffin House’s range of high-value potential uses, possible within the existing R2 Zoning, including childcare centre, educational establishments, health consulting rooms, seniors housing and places of public worship.
While also noting the excellent condition of the aged care asset at Verdun Street, which includes contemporary operating features such as on-site laundry, staff parking, and loading areas.
“Recently renovated, this asset is strategically positioned close to the nearby medical precinct of St George private and public hospitals, with proximity Kogarah Station and Kogarah Town Centre shops and services,” added Litwin.
“This asset had the potential to consolidate with Griffin House to add rooms and increase operational efficiencies, and also has potential reuses, just like its neighbour. The site is well positioned in a valuable underlying corner landholding with triple street frontages and multiple points of access and egress via Verdun Street and Griffin Avenue.”
Meanwhile the third asset exchanged in the portfolio is a two-storey 33-room former aged care facility on a 1,250sqm site at 34 Bayview Street in Arncliffe.
The Arncliffe property boasts redevelopment potential with its development approval for build out works to provide Specialist Disability Accommodation (SDA).
“Underpinned by high-value planning controls and a flexible R3 Medium Density Residential zoning, the land lends itself well to the existing aged care improvements, adaptive re-use, or new development,” said Pirrottina.
“Additional potential development uses include townhouses, childcare, boarding houses and duplex homes.”
Constructed in the 1970s, the site currently comprises small private rooms and multi-bedded rooms, a communal lounge, dining rooms, kitchen, laundry and staff areas.
“This purpose-built aged care facility has since been converted and used for the purpose of a Supported Independent Living group home, but the improvements are ripe for renovation, refurbishment or repositioning with potential to convert to alternative uses,” added Pirrottina.
“Development approval has been obtained to carry out build works to provide Specialist Disability Accommodation, but as yet no work has been undertaken.”
The Arncliffe property sits within close proximity to the Banksia Train Station, bus stops and the local retail village.
“With government funding underpinning many care assets through various funding mechanisms, as well as an ageing population, they will continue to perform well and be in high demand. There is aggressive capital seeking alternate asset classes for diversification, as well as strong returns, and care-related assets also provide the socially conscious investors with another benefit,” added Litwin.
“This is an increasingly emerging market that will continue to grow and attract the attention of investors. Assets that offer both secure income as well as reuse or redevelopment opportunities will be particularly sought after.”
