Barwon sells medical centre, gym before auction
Barwon Investment Partners has sold another asset from the Healthcare Property Fund, this time in Adelaide.
The fund manager accepted a pre-auction offer for the medical centre and gym, part of the Playford Alive urban renewal project, at Munno Para.
Worth $7.27 million, the result reflects a 6.14 per cent net passing yield.
Barwon paid $4.95m in May, 2017 – when it was developed.
The on sale was managed by Burgess Rawson from CBRE’s Sam Mercuri and Rick Jacobson with Leedwell’s Mitch Curnow and Jamie Guerra.
High profile property
On 1932 square metres at 256 Curtis Road, at the north west corner of Peachey, also exposed to Medina Lane, the Munno Para asset is anchored to Benson Radiology.
With 1343 sqm over two floors, there is also a dentist and gym.
The weighted average lease expiry by income is 5.38 years.
Rent reviews are fixed at CPI plus one per cent. Tenants also pay the bulk of outgoings (continues below).
The incoming owner will be able to claim tax depreciation benefits – 57 per cent of value in year one is potentially deductable, the agents said.
Being a South Australian property, the buyer also won’t be required to pay stamp duty.
Playford Alive is one of the country’s largest urban renewal precincts, expected to attract 40,000 new residents by 2033.
Munno Para’s population specifically is expected to grow 191pc by 2046, according to the agents.
The deal comes three months since we reported Barwon sold a medical-office asset in Brisbane for a loss on what it paid four years earlier.
Also in September the asset manager, for the Barwon Healthcare Property Fund, sold a South Bunbury medical centre, in Western Australia, for about the price it paid in 2020.
The trust retains about 45 assets worth a total c$500m.
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