Cheltenham day hospital sells for $5.52 million following globally streamed boardroom auction

A Cheltenham day hospital has traded for $5.52 million following an invite-only boardroom auction at CBRE’s Melbourne office.

The sale of 26-28 Chesterville Road was live-streamed to offshore medical professionals and investors who showed an interest.

CBRE partnered with Anywhere Auctions so as to allow for global bidding.

The investment was offered by Germany-based healthcare group Fresenius Medical Care.

On a 551 square metre plot opposite Westfield Southland Shopping Centre, the 1172 sqm clinic is leased to an Australian operator, Cura Group, which is paying annual rent of $288,000, plus GST.

26-28 Chesterville Road, Cheltenham (centre).

Based on those numbers, the investment is selling on a 5.2 per cent passing yield.

Cura Group has the option to renew its lease to 2039.

Approved to accommodate multiple medical practitioners, the newly fitted out centre is surrounded by 17 on-site car parks.

CBRE’s Sandro Peluso said the campaign “exemplified the strong demand for medical investments, regardless of the nation’s political environment”.

“Investors at all price points are gravitating towards the stability of the healthcare sector, and this property was no exception – attracting interest from a number of high net worth privates, in addition to larger medical funds,” he added.

“Following the Coalition’s election win, $29.1 billion in hospital funding is being forecast by 2024-25, clearly demonstrating to a number of buyers that this is a sector which will be supported into the future.”

Mr Peluso marketed the Cheltenham property with colleagues Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto.

Mr Twelftree said boardroom auctions remained a niche sales method, compared to standard on-site sales and expression of interest campaigns.

”We had a number of requests to view the auction by medical professionals and investors across the globe, which is why we chose to make the auction available via live stream – maximising the price for our client”..

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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