A fully leased Corio medical centre neighbouring four vacant dwellings offering immediate development upside, has been snapped up by Australian Unity for the Healthcare Property Trust.
On 6727 square metres at the junction of Bacchus Marsh and Cox roads, and the Princes Freeway, the property includes the multi-level Corio Medical Centre.
With 1324 sqm in several buildings, this component is leased for seven years to Northern Bay Health Group subsidiary Hills Medical, which pays annual rent of c$430,000.
The standalone homes were marketed for their potential to add to the income, but which AU will instead develop more essential services product.
The asset includes a car park off Georgia Grove too; all up there are 74 bays.
East coast focus
Australian Unity paid $9.5 million for the holding, covering 1-9 and 11 Bacchus Marsh Rd and 41 and 45 Georgia Gve.
Following the deal, HPT will hold 84 assets, including development sites; the gross asset value is c$3.3 billion (story continues below).
The bulk of properties by number are in Victoria (28) and New South Wales (27), but measured by value, is in Queensland (39.1pc of portfolio value).
It also holds investments in South Australia and Western Australia.
Just over half the fund’s product is hospitals, followed by medical centres/offices (26pc), aged care (11pc) and building blocks (4pc).
Metro North Hospital and Health Service and Ramsay Health are its biggest tenant clients – combined contributing to 35pc of the income.
All up however, 177 tenants rent HPT assets.
“The [Corio] property represented the most substantial and strategic commercial landholding in Corio providing significant scope for future redevelopment given the central location especially being opposite the future Northern Aquatic and Community Hub, with over $60m to be invested by the council,” Mr James said upon listing it.
“We are not simply talking about a recession-proof income stream from a blue-chip tenant but a property which also offers exceptional development prospects down the track at the gateway to the Geelong CBD,” he added.
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