Aged care investment Crofton House, in Blackburn, sells to Asia-based family for c$8.5 million

A birds-eye view of Crofton House in Blackburn.

An Asia-based family is paying a price speculated to be $8.5 million for an aged care investment in Melbourne’s eastern suburb of Blackburn.

Crofton House (pictured top, left and bottom) sits on a 4082 square metre plot covering the addresses of 13 Railway Road and 14 Lithgow Avenue and returns annual rent of $463,750.

On that basis, the deal, negotiated by CVA’s Ian Angelico, Jarrod Moran and Stan Dawidowski, is happening on a passing yield of about 5.5 per cent yield.

The purchaser is said to hold a number of other commercial investments in the city.

“A number of local and internationally based high net worth individuals and property syndicates competed to secure the property,” Mr Angelico, the agency’s managing director, said, adding that more than 70 enquiries were received.

“The property’s substantial size, confidence in aged care as an asset class, and strong underlying land value contributed to the excellent response.”

Mr Angelico said most buyers were seeking a passive rental income investment together with an eye for future development that planning advice indicated would suit a high-density residential project.

The 45-place centre is on land zoned Residential Growth, close to the Blackburn train station and Blackburn Village shopping centre, about 17 kilometres from the CBD.

The operator signed a five-year lease deal for the property, commencing in August. The rental agreement allows for two five year extensions.

One of the images used during the marketing campaign, showing Crofton House in relation to central Blackburn and the Melbourne CBD.

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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