Forza Capital has sold Barwon Investment Partners a South Brisbane healthcare centre for $34.7 million.
The Melbourne based vendor paid $23.65m for the asset, 55 Russell Street, in early 2019.
With 50 car parks and 4081 square metres of A-grade office space, the triple storey building is fully occupied by three state government departments including Queensland Health.
The 2153 sqm Principal Centre zoned block at the corner of Edmondstone St, near the Queensland Children’s Hospital and a Mater Misericordiae clinic, has development upside – up to 12 floors.
Cushman & Wakefield’s Frederic Le Fanue, Mike Walsh and Peter Court brokered the sale which reflects a five per cent yield.
The Weighted Average Lease Expiry is nearly four years.
“Investors continue to seek well located assets with exceptional lease covenants and track record, which is driving strong demand for buildings leased to health and government tenants,” Mr Fanue said.
“South Brisbane has enjoyed significant gentrification over the past decade and benefitted from major projects like the $800m West Village and Fish Lane entertainment areas,” he added.
“This backdrop provides exceptional future redevelopment and value-add potential for 55 Russell St,” according to the executive.
Forza’s Ashley Wain said it planned to hold the property after filling a 67 per cent vacancy and achieving a 6-star NABERS rating, but “when the off-market offer was presented…it made sense to divest”.
Barwon portfolio manager Brendan See added “we are well capitalised and looking to deploy funds into all types of real estate throughout the healthcare continuum from hospitals to medical centres through to disability services and medical offices” (story continues below).
Meanwhile in Canberra, Barwon announced it is purchasing two investments for its Healthcare Property Fund (BHPF).
The largest property, the Ginninderra Medical Centre at Belconnen, contains 1725 sqm of area.
On nearly a hectare at 33 Egan Court, also the corner of Coulter Drive and Nettleford St, it offers development upside.
This property previously traded for $9.68m early last year.
A second asset, the Phillip Medical and Dental Centre at 33 Colbee Ct contains 1430 sqm; it last sold for $8.32m at the same time.
Both are leased to Healius with a blended WALE of 8.3 years.
The acquisitions are BHPF’s first in the country’s capital.
The fund now holds 40 properties worth a total of c$441m.
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