Nicole Chow sells biotechnology precinct car park

The car park covers two basement levels of 33 Flemington Road.

UAG has sold a major car park investment forming two basement levels of a 20 storey North Melbourne apartment tower.

Also known as the Melbourne Health Hospital Car Park, the asset – 102 bays within the North complex at 33 Flemington Road – is changing hands for around $5 million.

Fully leased – 15 to the Leukaemia Foundation, which has its headquarters in the building, with the balance to the state government’s Melbourne Health, the sale price reflects a c4.1 per cent net passing yield.

Colliers’ Alexander Leggo, Anthony Kirwan, Leon Ma and George Davies were the agents.

The buyer is a local private investor within the medical sector.

“It has been our pleasure to have created a quality asset that services the local community by providing medical staff with a secure car parking service within Melbourne’s growing biomedical precinct,” UAG managing director Nicole Chow said.

“The global pandemic has further consolidated the healthcare industry as one of the most robust and in-demand sectors in Australia,” she added.

“This is especially relevant for investors looking for a commercial investment that offers security through future demand”.

The deal comes three years since Ms Chow sold the strata office component of the building leased to the Leukaemia Foundation for $5.5m.

UAG completed North in 2015 (story continues below).

Last minute auction

Following two unconditional offers last Saturday, Colliers organised a 10pm auction that evening.

Thirty five bids were made, the agents said.

“Car park investments are proving to be a strategic portfolio diversification play for savvy investors that can effectively de-risk their returns,” Mr Leggo said.

“In addition, medical investments are more popular than ever due to the security they offer against the backdrop of a pandemic,” according to the executive.

Mr Kirwan added “population and density growth around the CBD is pushing demand for car park space particularly around the biomedical precinct – a booming precinct at the national forefront of medical resources and innovation”.

Elsewhere in the area, the Royal Melbourne Hospital leased 10,000 sqm of a new office PDG has just built on airspace of the City Toyota site, on Elizabeth St.

“This car park asset provides the ultimate passive and alternative investment, requiring minimal maintenance and ideally positioned to benefit from future value uplift and continue servicing staff at the Royal Melbourne Hospital into the future.

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Marc Pallisco

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