Grovedale medical centre a health investment amid global crisis
The security of a medical practice amid a global health crisis proved to be a honey pot for property investors in Grovedale.
The blue chip tenanted investment at 1, 2 & 6/122 Burdoo Drive, Grovedale, achieved a mid 4 per cent yield when it was snapped up.
The 275sq m property was scheduled to be auctioned on July 16, but Victoria’s snap Covid-19 lockdown led Maxwell Collins Geelong agent Don Hough to convert it to an expressions of interest campaign, closing at 5pm the same day.
“We got in touch with about 60 of our direct parties who inquired on the property to advice them that we were to then go to an expressions of interest campaign whereby we invited them to put their best position to us by close of business Friday night,” Mr Hough said.
“And as a result, we were able to achieve five immediate parties who were in a position where they could submit their best positions.”
Mr Hough said the sale exceeded expectations, which had been set from $1.8 million to $1.875 million.
It was sold to a local investor.
“Having a blue chip investment such as a medical centre, which essentially is a business that’s you’d have to say well placed in all kinds of economic situations, would give comfort to the investors that they would know that they would receive their rent,” Mr Hough said.
“It was a blue chip investment and the market recognised that.”
Mr Hough said it was a great annuity investment.
“The yield was strong in the current market where interest rates are low. It was a great investment for those who were wanting to place their superannuation or other savings into.”
Mr Hough said interest was predominantly from Geelong, but there was significant inquiry from Melbourne and several Sydney parties prepared to act over the phone if it went to auction.
“Certainly from speaking to the Sydney inquiries, they believe this particular investment was a lot stronger in yield to what is being offered in the commercial market in Sydney.
“A lot of the properties that they were looking at were yielding around 3 per cent.
“So they saw this as a great opportunity. They understood from the type of business that was there that the investment strategy stacked up from their point of view.”