Demand for medical assets

Strong rental income streams driven  by surging population growth is  delivering sustained demand for  healthcare assets across Geelong.

The latest example is a  long-established Lara medical centre 
leased to health insurer GMHBA.

The purpose-built 429sq m facility with a secure lease with options  extending to 2037 sold to a  Melbourne-based investor for $3.5m.

Multiple parties competed for the Patullos Rd property when it was  auctioned recently.

It generates a net annual income of almost $215,000.

The position of the property close to the Lara West residential growth  corridor was one of its strengths,  Darcy Jarman director Tim Darcy said.

“This result underscores the market’s confidence in medical investments, particularly in locations with strong demographic and economic growth
like Lara,” Mr Darcy said.

“We’re continuing to see  metropolitan investors turning to  regional healthcare assets Buyers look to growth areas for rental  income for their stable returns and
growth potential.”

Medical and healthcare tenants
have been attached to some of the  most prominent sales across Geelong in the past year.

This includes a converted warehouse in central Geelong that sold for $1.33m after the building was repositioned with a new six-plus-year lease to berth a leading pregnancy  and birth care service, driving a
$72,800 annual return with fixed 4 per cent annual increases.

A long lease to anchor tenant Chemist Warehouse was central to an $8.875m price achieved for an island site with three key tenants on Geelong’s Little Malop St.

Healthcare assets in Grovedale, Corio and Hamlyn Heights have also been snapped up recently.

The latest to test the market is  described as a premium healthcare investment opportunity at 80  Geelong Rd, Torquay, which has already sparked significant early interest in the initial days on the
market.

Home to Surfside Dental Torquay, a practice operated by national provider National Dental Care, the purpose-built clinic offers investors a modern, near-new facility on a 1013sq m site with strong lease credentials.

The asset includes a five year lease with options to 2044, returning a net annual income of $132,000, with 3.5 per cent fixed annual increases.

“The early interest reflects the  strength of the Torquay market and the appeal of well-located,
high-quality healthcare  investments,” Darcy Jarman agent Andrew Prowse said.

The property, which is surrounded
by allied health services, will go hit the auction block on May 9.