Caroline Springs medical site reaches healthy $12.5m sale

A medical supersite at 224-226 & 228-232 Caroline Springs Blvd, has been snapped up by Hong Kong buyer for $12.5 million.

A Hong Kong buyer has splashed $12.5 million on a medical supersite in Caroline Springs – the highest price paid for a medical centre in Melbourne so far this year.

The sale of the property at 224-226 and 228-232 Caroline Springs Blvd is the fourth-highest price paid for a property in the suburb, according to CoreLogic.

The centre attracted investors and medical fund companies from across Australia and overseas, with strong competition pushing up the price beyond its estimated $11 million, according to CBRE’s Sandro Peluso.

Commercial Insights: Subscribe to receive the latest news and updates

“This represents the largest medical centre sale of 2018,” he says.

“The yield is also the tightest achieved for a healthcare asset over $10 million in the past 12 months.”

The sale trumped the $9.5 million price paid in May this year for a tri-level medical complex at 12 Thames St, Box Hill, and the $9.3 million sale in March for a medical centre on a 5332sq m corner block at 1-11 Dunnings Rd, Point Cook.

224-226 and 228-232 Caroline Springs Blvd, Caroline Springs, is in the heart of the suburb on an impressive corner allotment flanked by two shopping centres.

Containing five tenants including a radiologist, dental clinic and general practitioners, the centre is on a substantial 3135sqm corner block with 42 on-site car spaces.

“Rubbing shoulders with two shopping centres, it is a significant income-producing landholding with potential for future development,” Peluso says.

CBRE’s Josh Twelftree says the property has potential for an multi-storey extension.

“With Quest apartments across the road, it is granted a height precedent of more than six levels,” he says.

Peluso says the buyer, who has invested in supermarkets and shopping centres across Victoria, plans to retain the property and reap a rental income of $610,921 a year.

“The buyer will also take advantage of the property’s capital appreciation in Victoria’s fast-growing northwest corridor,” Peluso adds.

This article from Leader Newspapers originally appeared as “Healthy multimillion-dollar mega deal for Caroline Springs medical supersite”.