Collective buys Melbourne growth corridor healthcare investment
EXCLUSIVE
Collective Capital has bought an 18-month-old healthcare and wellness investment with development upside in Melbourne’s north.
The asset at 9–33 Errol Boulevard, Mickleham, with a medical centre anchored by Northside Imaging, a gym leased to Genesis, backed by Belgravia Health & Leisure Group, and a swim school, traded for $17 million.
Also including offices, the 3734 square metre improvement returns $1.23m in annual net rent from eight tenants.
The 2500 sqm site is zoned Urban Growth.
Known as Mickleham Medical, the asset forms the final part of a mixed-use project with exposure to Donnybrook Road, completed by Peter Spargo’s Spargo Group.
Another component, a convenience retail investment, traded in 2019 for $7.1m. Eight shops were sold down from 2023.
“Assets of this scale and quality in Melbourne’s northern growth corridor remain tightly held, particularly where there is a diversified healthcare tenancy profile and scope to add value,” CBRE’s Sandro Peluso, who brokered the deal with Marcello Caspani-Muto and Jimmy Tat and Jones Real Estate’s Paul Jones and Luke Peric, said.
“Demand has been driven by population growth and limited availability of comparable investments,” he added.
Mickleham Medical
The medical centre, swim school and offices are strata titled. Zoning allows for higher-density development, with existing buildings rising to three levels.
Collective Capital co-founders Nicholas Thompson and Dale O’Dwyer said the acquisition was supported by healthcare demand and underlying value in the strata components (continues below).
The group invests on behalf of private backers and holds a diversified portfolio.
In 2022, it acquired Melbourne’s former China Southern Airlines headquarters for about $40m, and in 2020 bought a Frankston office for half that.
The company also owns the former Dennis Homes headquarters at Malvern East, now partly leased to Colgate-Palmolive, and recently completed an office in Collingwood on Peel Street.
Outside Melbourne, in 2021 it acquired a former Bunnings in Albury for $29.5m and Canberra’s former Questacon administration building for $11m.
Two years earlier, it bought a Cairns office from Elanor Investors Group.
The Mickleham investment is about 32 kilometres from town.
“The property’s configuration created a compelling investment opportunity,” Mr Jones said.
“The substantial landholding together with the strata configuration introduced a level of optionality rarely
seen in healthcare assets of this size,” he added.
“That flexibility broadened the buyer universe beyond traditional healthcare investors, expanding the capital pool and reinforcing competitive tension throughout the campaign,” according to the executive.
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