Investors spend $18.8m on healthcare assets

Dandenong’s ex-St John of God Pinelodge Clinic, on a Residential 1 zoned site.

Two metropolitan healthcare investments sold this month on vastly different yields.

The state government recently leased the Dandenong property.

In Melbourne, the Dandenong nursing home recently known as the St John of God Pinelodge Clinic, or Dandy Pine Lodge Apartments, collected $11.68 million – a 3.55 per cent return.

Now an uber secure investment – the state government’s Monash Health occupies the two storey, 4040 square metre facility on an 8896 sqm Residential 1 zoned parcel at 1480-1492 Heatherton Road, on a new lease expiring in 2044 or 2119 with (five 15 year) options – with 93 car parks and three standalone homes, it is passed by some 26,000 vehicles a day.

The occupier’s agreement sees it pick up all outgoings except land tax.

Its rent will also rise three per cent yearly for the initial period.

Dandenong is about 28 kilometres south east of the CBD.

Karalee Medical Centre

Meanwhile, in Brisbane’s south west Chuwah, the Karalee Medical Centre traded for $7.1m – a 6.5pc return (story continues below).

Karalee Medical Centre is trading on a 6.5 per cent yield.

On 3485 sqm at 4 Centre Court, beside Consolidated Property Group and CVC Lane Capital Partner’s Karalee Village Shopping Centre, it contains 997 sqm, completed in 2019.

Occupiers include Sonic Health Matters, which contributes to 78.5pc of the income and has branding rights, Target Physiotherapy and F45; the weighted average lease expiry is 4.8 years.

There are also 41 car parks.

Chuwah is about 47km from the CBD.

Burges Rawson’s Raoul Holderhead, Andrew Havig and Rick Jacobson were the agents.

The same broker’s Jamie Perlinger, Zomart He, Justin Kramersh, and Rob Selid marketed the Melbourne property, closing an expressions of interest campaign on April 11.

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Marc Pallisco

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