Medical properties just the tonic for investors

The first level of the Bendigo medical building is being sold.

Medical-based commercial properties are coming sharply into focus in the back half of 2018, with a number of properties transacting or being released onto the market.

Just weeks after a Hong Kong buyer splashed $12.5 million on a medical supersite at Caroline Springs in Melbourne’s outer suburbs, two suites within a popular Blackburn medical centre have been put up for sale, while part of a major medical facility in the regional city of Bendigo is also available.

Level 1 of the Bendigo property, which is also home to Monash IVF and Bendigo Day Surgery, will be sold later this month and is expected to be keenly sought after.

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With 887sqm of specialised medical space, the property has seven premium medical tenants, including a pathologist, a plastic surgeon and a St John of God Hospital consulting suite.

The 1 Chum St property draws a passing income of more than $285,000, and makes up half of the building.

CBRE’s Sandro Peluso, Josh Twelftree and Jimmy Tat are marketing the facility, with Twelftree saying it offers an affordable entry into the medical market.

“This is an exciting opportunity for investors – who would usually be priced out of the healthcare market – to secure 50% of a secure, long-term investment in a stable asset class.”

Peluso adds: “We anticipate investors will be drawn to this asset due to its WALE (weighted average lease expiry) of over 3.5 years, modern improvements and blue chip tenants – allowing for a secure medium-term investment. The property’s location near the 144-bed St John of God Hospital should also drive buyer interest.”

The pair of medical-based properties on Whitehorse Rd enjoy significant passing traffic.

A pair of neighbouring medical suites at 195-197 Whitehorse Rd in Blackburn are also up for grabs.

The suites enjoy significant foot traffic from the surrounding businesses, including a doctor’s clinic, and are currently home to Blackburn Specialist Centre and Blackburn Central Pharmacy.

The three CBRE agents have also been tapped to sell the suites. They say there are few sites in Melbourne’s east that have the level of exposure that the Blackburn properties do, with around 15,000 passing cars each day.

“Both opportunities present as ideal superannuation investments, given the established nature of the tenancies. The centre also neighbours Blackburn Primary, which underpins visitation from students and their families,” Peluso says.

Expressions of interest for the Blackburn suites close on October 25.

Meanwhile, a nearby potential development site that is currently home to an Early Settler furniture outlet and Nationwide Towing has also been put up for sale.