Investor demand remains strong for medical assets
Local, interstate and offshore buyer competition for a Bentleigh East medical clinic has reinforced the strong attraction of health and medical operator-leased assets to investors.
In the latest deal, Fitzroys agents Tom Fisher and Chris Kombi sold 5 Chester Street — adjacent to Monash Health’s Moorabbin Hospital – for $2.29 million after a highly competitive expressions of interest process.
The 893 square metre residential-zoned land has a 215 square metre building housing five consulting rooms, reception, waiting areas and staff and administration rooms. It has long leases in place to Southern Breast Oncology and Dorevitch Pathology and sold on a tight 5.1 per cent yield.
Fisher said strong levels of enquiry for healthcare investments are continuing in all parts of the market, from private investors through to institutional players.
“The underlying land value of the substantial site was also a driver,” he said.
Market attraction
A North Melbourne cafe in the tightly held Queen Victoria Market precinct has sold under the hammer for $2.57 million.
The deal for 123-129 Howard Street represents a land rate of $9915 a square metre and a building rate of $10,100 a square metre.
The property was purchased by an owner-occupier looking to take advantage of its month-to-month lease to put their own business in the premises.
CBRE’s Scott Hawthorne, Jack Pignata and JJ Heng handled the sale.
“Having five bidders vie for the property demonstrates the level of demand for flexible freehold opportunities in the city fringe,” Hawthorne said.
Nunawading investment
A prime industrial office/warehouse spanning two levels at 3/56 Norcal Road, Nunawading, has changed hands for $2.8 million.
A local investor who holds other assets in the area purchased the property for building rate of $3949 a square metre and a yield of 4.42 per cent.
CVA’s Stan Dawidowski, Jarrod Moran and Ian Angelico handled the sale.
“While this is a low yield for the current market, the buyer has had good success with other acquisitions in the Nunawading area and was confident to proceed with a strong lease and well-appointed fit-out,” Angelico said.
Fully leased
Colliers’ Nick Saunders and Charlie Woodley, on behalf of real estate investment trust Centuria Capital, have secured a five-year lease of 60 Fulton Drive, Derrimut, to logistics firm DGL Group.
The property consists of a 12,029 square metre office and warehouse sitting on a 25,335 square metre site.
Saunders said the acquisition would allow the group to run two separate businesses – DGL Warehousing and Distribution and DGL manufacturing – under the same roof.
Mark Jones, Centuria’s general manager, Victoria, said the group has clustered 55,884 square metre along Fulton Drive across seven warehouses and, with this transaction, the industrial estate is now 100 per cent leased.
Woodley said 75 per cent of the leasing transactions that have taken place this year in Melbourne’s West have been secured by the transport, logistics and retail sectors.
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