Barwon in the black from day hospital sale
Barwon Investment Partners has sold a Melbourne healthcare asset for a 44 per cent premium on what it paid in late 2021.
The strata-titled Sir John Monash Private Hospital at Clayton fetched $7.65 million from a private investor.
The result reflects a 6.3 per cent net passing yield.
It previously traded in mid-2019 for $4.47m.
Sir John Monash Private Hospital
The result for the Sir John Monash Private Hospital, spread across suites 15-21, occupying part of the first level at 212-220 Clayton Rd, prices the building area at $10,975 per square metre (697 sqm).
Cura Day Hospital Group, backed by London-listed Intermediate Capital Group, is the tenant on a lease expiring in 2032 with options to 2052.
The operator pays all outgoings including land tax.
The asset also includes 23 on-grade car parks.
Multiple offers were received following an expression of interest campaign closing in mid-April; the agents said more than 80 enquiries came in, and it traded unconditionally (continues below).
London-listed tenant
The purpose-built, 697 square metre clinic includes two operating theatres and two dental procedure rooms supporting about 90 doctors.
The yield is the lowest for a Victorian strata-titled medical centre over $5m, since 2023, Colliers’ Lucas Soccio, who brokered the deal with Justin Hazell and Ben Baines, said.
“The remarkable level of interest underscores the market’s appetite for high-quality healthcare assets,” according to the executive.
“Investors are actively seeking the security that comes with a strong tenant covenant and a proven, resilient industry like medical service,” he added.
Mr Baines said “assets with a long operational history, blue-chip healthcare tenants and direct links to one of Australia’s leading medical precincts rarely come to market”.
“This result demonstrates just how strongly investors are valuing certainty of income, resilience and long-dated lease security,” he added.
“When comparing the result to traditional first floor space, the result represents an uplift of approximately 30pc portraying the value of investments underpinned by national tenants,” according to the executive.
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