This article is from the Australian Property Journal archive
WITH more investors chasing defensive healthcare real estate, the Manningham Medical Centre has hit the market and is tipped to sell for around $50 million – in one of the biggest social infrastructure deals in Melbourne this year.
Located at 200 High Street, Templestowe Lower, in Melbourne’s north east, the 5,000 sqm six-storey centre has a WALE of 6.3 years and a gross passing income of $3,390,227 from a mix of anchor tenancies including a general practice, Nexus Day Hospitals, Sonic Healthcare and Capital Radiology.
It was completed in the early 2000s and underwent refurbishment with tenancy expansions and new fit outs.
CBRE’s Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat are managing the sale via an international expressions of interest campaign closing October 19, 2023.
The agents said the medical hub is one of the most trafficked healthcare assets in the country on a comparative square metre basis and this listing represents the highest quality healthcare offering within Victoria for several years.
“This is a rarity in a market where many medical clinics are struggling to source an adequate number of doctors,” said Peluso.
Caspani-Muto said the centre is also easily accessible from all eastern suburban locations, from Doncaster to South Yarra.
“The underlying demographics of the area are key to the building’s current and long-term success. The city of Manningham features a median income well above the Victorian average.
“This is what will continue to drive strong levels of occupancy and tenant renewals in combination with the high-quality nature of the centre’s existing improvements,” he added.
Healthcare property is one of the strongest performing alternative real asset classes. As a result, it has become highly sought after.
Earlier this month, the $1.8 billion Dexus Healthcare Property Fund acquired the Southport Private Hospital for $51 million and a 9.95% interest in Celsus Holding Pty Ltd, the consortium that manages and maintains the Royal Adelaide Hospital, after completing a $220 million capital raising. Due to the ongoing demand from investors, Dexus is expected to raise further capital in the near future.
Meanwhile last month alternative assets manager Barwon Investment Partners forked out $124 million to acquire three assets in Queensland and NSW for its healthcare property fund.
Prior to that Trident Property Advisory, in a joint venture with Cancer Care Associates, bought Noosa medical development site for $12 million, whilst Westbridge Funds Management sold the Cottesloe Medical Centre in Perth for $11.8 million, delivering a 540% return for investors.
Nonbank lenders are also capitalising on the greater appetite for healthcare and life sciences. In July real estate financier MaxCap provided APH Holding with a $150 million first mortgage construction facility for the development of its Wellington Health project in eastern Melbourne.
Wellington Health, in the satellite suburb of Box Hill, is a 21-level medical building with a net lettable area of 27,872 sqm and a forecast gross realisation value of $300 million. The project forms the first stage of a multiple-stage integrated and full-service healthcare precinct masterplan that APH is developing in Melbourne’s south-east area.
That was shortly after the $3.9 billion Australian Unity Healthcare Property Trust last month snapped up a 7.5-hectare site near Melton Hospital, where it plans to develop a future private hospital, allied healthcare and retail facilities in a mixed-use town centre.
