Brighton East aged care smashes reserve by 75%

An aged care facility in Brighton East sold for $19 million.

Intense competition between a trio of aged care providers saw the price of a Brighton East respite facility, owned by Benetas, soar to $19 million – $8 million above its reserve.

While the property at 68-76 Union St attracted expected interest from local and offshore residential developers, they bowed out of the expressions of interest campaign as the three aged care groups went head to head.

The facility sits on a 5751sqm block, with 2210sqm of buildings, and was touted as a prime development site, with its location in one of Melbourne’s most affluent residential areas and proximity to Brighton’s Bay St shopping precinct.

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But Savills’ Clinton Baxter, who marketed the property with Jesse Radisich and Julian Heatherich, says demand for aged care facilities saw a leading provider dig deep to secure the property.

“Competition between these parties has pushed the price well beyond the vendor’s expectations and in the process achieving a record land sale rate of $3300 a square metre for a large bayside property,” Baxter says.

The sizeable Brighton East block was considered ripe for redevelopment.

The sizeable Brighton East block was considered ripe for redevelopment.

“The most significant driver has been the growing demand from the cashed up baby boomer generation and that is only going to continue as more of that generation reach retirement and beyond.”

The sale marks the second time in recent weeks that an aged care provider has trumped residential developers for a prime development site.

An aged care company paid an undisclosed sum to secure the Warringah Golf Course clubhouse in North Manly in late June, despite the property’s development potential.

Heatherich says demand for aged care is expected to continue, with research suggesting Australia is facing a shortfall of 60,000 residential care places.

Radisich says Benetas sold the property after deeming it surplus to its own needs.