Ken Biddick, the exclusive distributor and wholesaler of Converse in Australia and New Zealand, also a real estate investor and horse racing identity, has made another property play – outlaying $25 million for a Cranbourne North medical centre with long term development upside.
The Cranbourne Health facility was developed and offered by philanthropist Dr Leon Shapero, who is also a part occupier.
It has been extended a number of times over 30 years and now contains an internal area of 1400 square metres over two floors.
On the corner of Woodbine and Thompsons roads, the 4137 sqm holding also includes 72 at-grade car parks.
The address has had substantial retail and residential development occur around it – with a full line Woolworths supermarket to its west, and a Bunnings outlet, opposite, to the south.
The property is within the City of Casey, a growth corridor which is expected to have a population surpassing Canberra’s within a few decades.
Cranbourne North is about 15 kilometres from two major suburban activity centres: Dandenong and Frankston. It is about 39 kilometres south east of the Melbourne CBD.
The agents said Cranbourne Health was the most valuable medical centre to be offered for sale in Victoria since 2015.
When the agents listed the complex for sale in July, it carried a price guide of just over $20 million.
The actual sale price reflects a low passing yield of just over 5 per cent.
“The investment attracted interest from a variety of buyer types including individuals, syndicates and institutions,” Mr Peluso said.
“As expected, prospective buyers from Victoria, interstate and overseas expressed an interest.
“With over 10 per cent of the population aged between zero and four, Cranbourne’s substantial younger demographic will require greater GP and specialist services in coming years”.
Mr Twelftree added that interested parties were attracted to the Cranbourne North facility for its investment attributes – as well as its medium and long-term mixed-use redevelopment prospects.
The deal is the latest for Mr Biddick this downturn.
In 2016, the businessman and his wife, Catherine, spent $32.1 million on a Woolworths leased supermarket in Church Street, Brighton.
Mr Biddick had a year earlier sold the c1884 six-storey Newspaper House at 247 Collins Street, in the city, for $23.95 million.
Seven years ago, the pair spent $9.25 million for a strata retail space at the ground floor of the distinctive Manchester Unity building.
Also in 2011, the couple sold their renovated family home in ritzy Park Street, South Yarra, for $4.85 million. Mr and Ms Biddick paid intellectual property lawyer Wayne McMaster – a now partner with MinterEllison – $1.95 million for this dwelling in 2002.