This article is from the Australian Property Journal archive
THE Tseriotis family from Australia’s east coast has invested in a growth corridor on the other side of the country, snapping up a medical centre site opposite the home of the AFL’s Fremantle Dockers for $6 million.
The property at 850 North Lake Road in Cockburn Central, around 19 kilometres south of the Perth CBD, is known as Thomsons Lake Medical Centre and is on a significant landholding of 9,242 sqm. It is occupied by a purpose-built medical centre constructed in 2005 with a total lettable area of 705 sqm, 55 parking bays and 5,650 sqm of excess developable land at the rear.
Tenants within the medical centre include the Thomsons Lake medical centre general practice, occupying 458 sqm, a pharmacy (70sq m), Western Diagnostic Pathology (87 sqm) and a specialist consultant, Murdoch Psychiatry (90.5 sq m). Income is $390,323 per annum plus GST, and the site was sold on a net yield of 6.5%.
“Medical and allied health assets are one of the most tightly held sectors within the current market in Western Australia and the demand from investors, especially from the east coast, is still extremely high,” said Knight Frank’s Cory Dell’Olio and Tony Delich, who managed the sale with on behalf of a private West Australian family in the medical industry.
Delich said the property was in a highly-exposed location in a growth area of Perth, with 40.24 metres of frontage to North Lake Road and high exposure to passing vehicles every day. It is also a short walk from the Cockburn Central train station and town Centre.
Developments in the growing catchment include Cockburn Central West, directly opposite the medical centre, which features a $109 million first-class sport and recreation facility known as the Cockburn Arc, and home to the AFL’s Fremantle Dockers Football Club. Nearby is the new $26 million Bethesda Private mental health facility, as is the major regional Cockburn Gateway Shopping Centre, which is set to undergo a major expansion.
Dell’Olio said in addition to the location and quality of the covenant, one of the drawcards for the buyer had been the future development potential of the site.
“There is substantial land at the rear of the property which will likely be home to a residential development in the future,” he said.
“With prices rebounding in the residential market and rents continuing to rise, residential development sites are attractive for buyers.”
