Barwon divests medical-office
Barwon Investment Partners has sold a medical-office asset after four years.
The Red Cross headquarters – Humanity Place – at 49 Park Road, Milton, found favour with a local private investor, the Drivas family, for $19 million.
It paid $22.45m.
That seller, Deluca Corporation, had only just settled after agreeing to buy it from the not for profit with a leaseback for $13.3m ex-GST in 2019.
7.4 per cent yield
Developed in 2005 and last upgraded five years ago, with 2475 square metres over three floors, 49 Park Rd provides community health, disaster recovery management and first aid, as well as administration offices.
Advara HeartCare and CDI Lawyers are other occupiers. The weighted average lease expiry by income is 3.95 years.
Also with a 5-star NABERS rating, the improvement is elevated above the 2011 and 2022 flood lines, with 66 basement car parks.
The 1902 sqm Mixed Use 1 zoned site on the north west corner of Douglas Street offers significant development upsides, Knight Frank selling agents, Sam Biggins, Blake Goddard and Matt Barker, said.
Buildings between 20-37 levels have recently been approved nearby, they added.
“Milton is widely regarded as Brisbane’s premier near-city office precinct with significant arterial road and public transport connectivity nearby including the Inner City Bypass, Milton Citycat Ferry terminal, railway station and bikeways,” according to the executives.
“The renowned Park Road dining strip provides a high level of dining amenity, with the broader Milton precinct entering a phase of significant densification”.
Seven offers were received following an expressions of interest campaign which closed June 12, they said.
The price reflects an initial yield of 7.39 per cent.
The deal comes a year since we reported Barwon paid $72m for the ex-Golden Caskett headquarters – nowadays fit out with laboratories and day surgeries – at Woolloongabba.
Meanwhile four months ago the asset manager sold the City of Newcastle a Wollongong healthcare investment backed by Sonic.
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