Melbourne and Adelaide healthcare portfolio to be auctioned

The Melbourne properties are located in the eastern suburbs and north-west
The Adelaide property sits just outside the CBD
The total portfolio income per annum is over half a million dollars

A portfolio including two Melbourne healthcare facilities and another in Adelaide are set to go under the hammer. CBRE said the event will be Australia’s first dedicated portfolio auction in the sector.

The Melbourne properties are located at 10 Leith Road in Montrose, and 530-532 Melton Highway in Sydenham.

sia-medical-10-leith-road-montrose-melbourne-victoria — The 10 Leith Road, Montrose, property is tenanted by Sia Medical, with a lease term of seven years and $108K pa income. Image: CBRE.

Sia Medical tenants the 252 square metres Leith Road property, with the lease term noted as seven years, with two five-year options. The income is $108,000 per annum.

Capital Radiology tenants the 339 square metre property situated on Melton Highway, with the lease term being five years, with a five-year option. The income is $132,000 per annum.

Capital-radiology-530-532-melton-highway-sydenham-melbourne-victoria — Capital Radiology tenants the 530-532 Melton Highway, Sydenham property in Victoria, with the lease term being five years. Image: CBRE.

The third property is located just outside the Adelaide CBD, at 90 Henley Beach Road in Mile End. With a building area of 647 square metres, The Sports and Arthritis Clinic tenants the property with a 10 year lease term. The property has a $275,000 income.

90-henley-beach-road-mile-end-adelaide-south-australia — The Sports and Arthritis Clinic tenants the 90 Henley Beach Road, Mile End, property with the lease term coming in at 10 years. Image: CBRE.

Healthcare investments are mostly snapped up by high-net-worth’s, CBRE’s Sandro Peluso said the asset class is typically hard to come by:

“Healthcare investments are incredibly rare in the broader commercial market, with only a handful transacted each year, mostly to high-net-worth privates or institutional buyers.

“When you talk about medical investments in the sub-$10m bracket this scarcity is compounded, and we regularly hear from private investors seeking quality opportunities in this space.

CBRE’s Jimmy Tat added: “Medical investments with this calibre of tenant that are expected to transact in the sub-$10m pricing bracket are few and far between; having three in the same portfolio is unheard of.

“Sia Medical, Capital Radiology and The Sports and Arthritis Clinic are market leaders, and well-established in these locations.

“Given how entrenched each operation is within its local community, these really are long-term investment prospects.”