Council buys another investment
EXCLUSIVE
Barwon Investment Partners has sold a South Coast NSW medical centre after seven years.
The asset manager is banking $12.55 million for 21-23 Denison Street, Wollongong – known as the Sonic HealthPlus Wollongong.
It paid $10.08m in 2018 – just after it had undergone a major refurbishment.
The buyer is the City of Newcastle for the Newcastle Council Future Fund which aims to use revenue from investments like these to reinvest in the municipality.
Last month we reported council, for the fund, bought the Taree Bunnings.
Securely leased with development upside
Sonic and Illawarra Radiology Group occupy the 1117 sqm Denison St complex with 36 car parks; the weighted average lease expiry is six years though with options, can extend until 2046.
Based on the revenue – c$743,800 ex-GST and outgoings – the sale price reflects a 5.93 per cent yield.
On 2787 sqm zoned Mixed Use 1, the land has significant development upside – able to accommodate 16-20 level buildings with a 1.5:1 floor space ratio.
“Opportunities to secure assets of this calibre, particularly in New South Wales, remain rare – especially when underpinned by ASX-listed tenants like this,” JLL’s Simon Quinn, who represented Barwon with Thomas Thorsen and Mark Stafford, said.
“Over the past 18 months we have seen private investor interest in assets of this nature surging, with these capital ready groups able to act swiftly to secure assets,” he added.
Council was advised by Commercial Collective’s Matt Kearney.
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