This article is from the Australian Property Journal archive
A FIGURE in the low to mid $30 millions range is expected for a brand-new Next Generation health, fitness and lifestyle centre in Melbourne’s eastern suburbs, which has been offered to the market as the wellness market recovers evolves following the worst of the pandemic.
Next Generation Clubs Australia opened the doors to the Next Gen Doncaster in May last year with a 15-year triple net lease and a pair of 10-year options, underpinned by a 10,950 sqm landholding.
The 3,610 sqm facility includes a gymnasium, outdoor and one swimming pools, spa and sauna, four tennis courts, function spaces, café, outdoor dining terrace, commercial kitchen, crèche, change rooms, and secure on-site parking for 172 cars.
Colliers agents Peter Bremner, Rob Joyes, Leon Ma and Karen Wales have the listing.
Bremner said it is “rare to find a commercial investment opportunity with this kind of security”, providing a passive long WALE investment with a commencing annual rental income of $1.5 million per annum.
The triple net lease means the tenant covers all outgoings as well as repairs and maintenance of a structural or capital nature.
Joyes said that the wellness market has seen rapid growth over the past three years with the sector adjusting to requirements brought upon by the pandemic.
“The rising interest in wellness is not going away. People are becoming more knowledgeable about their health, realising that prevention is much better than cure.”
The global wellness tourism market is expected to reach $919 billion in 2022 and grow by 6.6% annually.
Part of the brand-new facility is 1887-built Tullamore House, which has been restored and is now used as a private function room with second-storey overlooking the CBD.
The 21 Members Drive property is on a corner block with prime frontage to Doncaster Road, and secondary frontage to Heritage Boulevard, Members Drive and Silver Leaf Circuit.
Expressions of interest close 18th October.