Medical fund manager Barwon Investment Partners has banked $11.4 million from a purpose-built healthcare facility in Brisbane’s inner-north Newmarket.
The selling agency isn’t disclosing the yield other than to say it “closely matched” the five per cent achieved for nearby 9 Ashgrove Avenue, Ashgrove, earlier this year.
That property contains 618 sqm of lettable area and sits on an 800 sqm block.
Newmarket 7 Day Medical Centre at 76 Enoggera Road includes 1069 sqm of space and spreads over 3341 sqm.
It is 85 per cent occupied to five tenants; the Weighted Average Lease Expiry by income is 5.3 years.
Knight Frank selling agent Blake Goddard said the campaign was carried out during COVID conditions.
It was acquired by a private investor (story continues below).
“The purchaser was attracted to the health-related nature of the asset, particularly during a global pandemic, in which the health sector has remained strong and resilient,” the executive added.
“He was also looking for a counter-cyclical play and a property with a strong history of tenure, which this Newmarket asset delivered.
Barwon reset some of the leases to improve the WALE prior to listing.
Colleague Matt Barker said investor interest for 76 Enoggera Road was underpinned by “not only the quality of the covenant, but the high-profile location”, on a highly exposed corner, five kilometres from the CBD.
“Another attractive feature of the asset was the opportunity for a unique value-add opportunity via the addition of a childcare facility due to the size of the site, subject to council approval,” according to the agent.