This article is from the Australian Property Journal archive
A FULLY-leased medical asset in Melbourne’s south-east, leased to one of the largest health providers in Victoria, has sold for $11.68 million, in a deal that reflects a sharp yield of just 3.55%.
Burgess Rawson’s Jamie Perlinger, Zomart He, Justin Kramersh, and Rob Selid facilitated the sale of 1480-1492 Heatherton Road in Dandenong.
Situated on an 8,896 sqm site with triple street frontage, the asset comprises a two-level medical facility, support buildings, two residential buildings and 93 on-site car spaces.
Monash Health has a brand-new 20-year lease at the facility with five further 15-year options that extend to 2119. Monash Health occupies 40 locations, providing care for over 3.6 million incidents within the community each year.
The property sold to an investor seeking a generational investment opportunity, He said.
The agents touted the result as a record-low yield for a Victorian health asset worth over $10 million.
Strategically positioned with easy access to major arterials such as Frankston-Dandenong Road, Monash Freeway, South Gippsland Highway/Freeway, and Eastlink, the property boasts a 116-metre main road exposure to Heatherton Road, servicing 26,000 vehicles passing daily.
Total health spending within a three-kilometre radius amounted to $63.6 million in 2023, alongside over 259,000 GP visits.
The City of Greater Dandenong is expected to see a 15.4% increase to 189,891 by 2036.
Burgess Rawson recently sold a health asset in Bridge Road, Richmond for $24 million. Occupied by Healius subsidiary Lumus Imaging, the 1,227 sqm building has a 20-year lease to 2035 plus options and sold on a yield of 6.34%.
Data from the agency shows there was a 325% surge in medical sales activity in the March quarter compared to the same period in 2023, to nearly $64 million in sales.
Perlinger said the surge signifies a significant change in investor sentiment towards the healthcare sector, driven by rising demand for healthcare services, technological advancements, and the sector’s resilience.
“Healthcare real estate is increasingly recognised as a stable and profitable investment option.”
