Audiologists collect $4.3m from clinic near Knox Private Hospital

The property occupies a 2093 square metre site a hundred metres from Knox Private Hospital.

An audiology clinic near Knox Private Hospital, in Melbourne’s east, has sold for $4.32 million.

The vendors, occupiers who purpose built the facility at 230 Mountain Highway, Wantirna, in 1988, offered it with a 10 year lease.

The deal, to a local investor, was struck on a 4.6 per cent yield.

The medical centre (marked) is opposite an old drive-in, now the Wantirna Trash and Treasure Market.

Within the commercial property space, CBRE Healthcare and Social Infrastructure’s Josh Twelftree, Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat said, essential medical services including dentists, orthodontists, specialists and screening clinics are operating during the stage four lock-down.

Landlords within the asset class moving forward, they added, are less likely to suffer vacancy, or need to provide rent relief compared to other sectors, like retail.

Wantirna is about 25 kilometres from the city.

This site is opposite the former Wantirna Drive In, now a trash and treasure market – but longer-term, potentially, a major residential village.

It is also adjacent to a recently vacated caravan park, on 8.3 hectares, which is permitted for 350 townhouses.

The Wantirna property

Knox Audiology ENT and Specialist Suites, operated by Guy and Helen Campbell, occupies 230 Mountain Hwy – a 2093 square metre General Residential zoned site with 42 car parks.

Eight practitioners are permitted to operate there.

A 378 sqm single storey facility contains eight consulting suites and two specialised audio rooms, as well as a reception, waiting area and staff amenities.

The holding is about 100 metres from Eastern Health’s Wantirna Health and Knox Private Hospital – the latter, one of the state’s largest private facilities (story continues below).

The vendor’s lease charges starting rent of $200,000 plus GST and outgoings, except for land tax.

Mr Twelftree said the potential for a lift in the return attracted investors to the asset.

Valuers, investors, price healthcare assets differently: agent

“Medical rents are a contentious issue when it comes to healthcare real estate,” the agent said.

“Many valuers I feel are getting it wrong when they value a medical centre on a rate per sqm over the building.

“If you were to look at the rent for this investment over the building area, it would be perceived as above market.

“But many investors and valuers are not aware that the rental levels are driven by the amount of permitted practitioners,” the executive added.

“The greater the number of permitted practitioners the greater the potential to increase profits in the business and affordability to pay higher rental levels.

“The medical permit and the number of medical practitioners granted by council is driven by the amount of car parks on-site.

“If you were to assess this property on a rental rate per practitioner, it would be perceived as being below-market.

“As you can see there is significant ambiguity in these two valuation methods and in my view more emphasis needs to be placed on valuing a medical centre solely on the medical permit approved”.

The property is configured with a 378 square metre medical centre and 42 car parks.
The vendors built the property for their business in 1988.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of