Gastroenterologist Ian Fok banks $8.6 million from Sunshine day hospital

Doctor Ian Fok has sold a day hospital in Melbourne’s west to a medical syndicate for $8.6 million.

The Sunshine complex at 493 Ballarat Road was listed by CBRE in July with a c$8 million price guide.

Leased to the largest gastroenterology and hepatology practices in the city’s western suburbs, the 1000 square metre medical facility, with 21 car parks, occupies a 2130 sqm site, and returns annual rent of $520,000.

The site at 493 Ballarat Road (shaded) relative to Sunshine landmarks.

Zoned Activity Centre, the land, between Harvester and Hampshire roads and near Sunshine Plaza and Sunshine Marketplace, has development upside following lease expires – with structures of up to  30 metres permittable.

Any rebuilding of the block won’t be for at least 10 years, however, and assuming the occupiers, Dr Gastroenterology and Dr Scope, don’t exercise a five year renewal option.

Sandro Peluso, Josh Twelftree, Jimmy Tat and Marcello Caspani-Muto represented Mr Fok, who listed the Sunshine asset for sale last year with another agency.

CBRE remains the only agency to transact Victorian hospitals in 2019 – the agents said.

Mr Peluso added that the Sunshine asset attracted many investors who missed out on buying the Chesterville Day Hospital, in Cheltenham, in June.

Mr Twelftree said that it was unusual for two day hospitals to hit the healthcare market in such quick succession.

“The recent Chesterville Day Hospital campaign generated strong interest from high-net-worth investors and national medical funds, highlighting a growing demand for premium hospital investments,” the agent added.

The sale price of the Sunshine asset translates to a passing yield of 6 per cent.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of