Torquay dental clinic has buyers grinning amid sharp return
The freehold to a Torquay dental surgery at 80 Geelong Rd, Torquay, has sold for $3.01m.
There’s a well-founded reason why buyers have a healthy obsession with medical property assets.
They pay off.
A purpose-built dental facility for Surfside Dental at Torquay was snapped up at auction for $3.01m, setting a sharp 4.38 per cent yield as investor demand for healthcare assets continues to grow.
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The 250sq m clinic built in 2023 was listed for sale with a strong lease covenant to National Dental Care, set around a five-year lease with options to 2044, returning a net annual income of $132,000, with 3.5 per cent fixed annual increases.
Darcy Jarman, Geelong agent Andrew Prowse said the region’s healthy population growth was driving not only the development of new healthcare facilities, but making them highly sought after when they come on the market.
The dental surgery was built in 2023.
Demand for healthcare assets continues to grow in the region.
“Healthcare assets remain a top performer, delivering long leases, essential services, and resilience in any economic climate,” Mr Prowse said.
“Torquay’s transformation into a dynamic coastal precinct is boosting the appeal of properties like this.”
Mr Prowse said the appeal of healthcare assets was underpinned by the high population growth in corridors such as Torquay.
Healthcare assets offer investors the protection of stable demand for services, in particular due to an ageing population and also population growth.
They often come with long-term leases, providing investors with stable income streams.
Torquay’s rising population is driving demand for healthcare services, underpinning income streams for investors.
The sale of the 1013sqm property at 80 Geelong Rd was managed by Darcy Jarman agents Tim Darcy and Mr Prowse, in conjunction with Tim Carson at McCartney real estate.
The property previously sold as a house in 2019 for $1.16m.
The established operator, National Dental Care, also underpinned the level of interest in the property, with investors being increasingly drawn to the combination of secure returns and long-term capital growth in vibrant markets.
The sale follows $3.5m sale of a long-established Lara medical centre leased to health insurer and healthcare operator GMHBA.
That facility was on the edge of a new growth corridor to the west of the town.
Healthcare assets in Geelong, Grovedale, Corio and Hamlyn Heights have also been snapped up recently.
