Geelong medical sector properties just what the doctor ordered
The attraction of the medical sector with commercial investors has been underscored with the recent sale of a property in Geelong’s northern suburbs.
The long-time home for the Corio Dental Surgery was offered through a private deadline sale, which wrapped up last week for $950,000.
Darcy Jarman, Newtown agent Tim Darcy said the campaign attracted about 70 inquiries.
“It’s an investment-grade property,” he said.
“The interest we generated was pretty broad — a lot of local interest, internal interest.”
“We ended up selling to a local investor at a yield of 4.78 per cent.”
The surgery occupies a 706sq m property at 112 Bacchus Marsh Rd, Corio.
The operators of the surgery signed a new lease last December, which runs for five years, with a further five-year option to 2030.
The net lease is $45,455 per year, plus GST, and the tenants also cover all council and water rates, building and insurances.
“Medical covenants are very sought after because they are considered to be a safe haven for passive investors,” Mr Darcy said.
“But it was in a very sweet spot too in its quantum price, around $1 million price range.
“Geographically, it was in an ideal position. It was a stand-alone, freehold property positioned adjacent to the Corio Village Shopping Centre.”
The dental surgery had operated at the address since the 1990s.
“It’s had a long and proven track record operating out of that location,” he said.
“The vendors were originally involved in the dental practice back in the 1990s so this is the first time (the property) has exchanged hands since.”
The sale comes as another medical complex is offered to the market in Grovedale.
The 275sq m complex at 1, 2 and 6/122 Burdoo Drive is home to Grovedale Medical Centre.
It’s part of the Grovedale Plaza shopping centre, which includes an IGA supermarket, specialty shops and a pharmacy.
The complex has seven consulting rooms, a treatment room, office, staff amenity and patient waiting rooms.
The tenants renewed the five-year lease in March, with a further five-year option.
Maxwell Collins, Geelong agent Don Hough has listed the property for auction on July 16 at noon.
Price hopes are $1.8 million to $1.875 million.