Northwest lists medical centres opposite Box Hill Hospital
Northwest Healthcare Properties Australia controlled REIT, the Vital Healthcare Property Trust, is selling two essential services investments opposite Box Hill Hospital’s main entrance.
The Ekera Medical Centre at 116-118 Thames Street and 120 Thames St, backed by amongst others, Epworth, Sonic Healthcare and Newlife IVF, are expected to collect a combined $50 million.
All up covering 2784 square metres on the corner of Nelson St, the Box Hill North properties offer long-term development upside; up to seven levels could be considered, according to CBRE marketing agents, Mark Granter, Sandro Peluso, Marcello Caspani-Muto and Jimmy Tat.
The sites sit in an essential services hotspot, they added, near the 14 storey Epworth Eastern East Wing Tower, completed in 2022 with 223 inpatient beds and 14 operating theatres.
They are also within a five minute drive of 13 private and public education facilities, the agents said.
Thames Street properties
Connected via a basement, the Ekera Medical Centre, with 2890 sqm over four floors and a basement with 133 car parks, was developed in 2013.
Returning annual rent of $2.15 million, it carried a market value of $39.2m as at December.
The neighbouring 120 Thames St, with 1319 sqm across three levels and 52 car parks in a basement, was completed in 2017 by ex-Colliers director turned developer, Tim Bolton.
Three quarters occupied at the end of last year, with the potential to earn $792,242 per annum fully let, it was valued at $12.7m.
Northwest paid MS Australia $10.1m in 2019.
Both properties are being offered individually or as a whole; an expressions of interest campaign closing mid-next month.
“The Ekera and 120 Thames St have served Vital well during a period of expansion of the core Epworth Eastern asset,” Northwest Healthcare Properties REIT vice president, Capital Transactions, Cameron Ramsay.
“These properties now provide a rare opportunity for investors to secure prime healthcare precinct real estate at an opportunistic time in the cycle,” he added.
Investors, occupiers
Mr Granter said as well as investors, he expects interest from owner occupiers, with the weighted average lease expiry of both buildings less than four years.
“The assets are situated in one of the highest quality healthcare precincts in Australia, close to Box Hill Public Hospital, Epworth Eastern Hospital and the Box Hill Institute,” he added.
“While there has been an increased level of healthcare opportunities come to market, few have had the combination on location, asset quality and price point to appeal to both private and public markets like these,” according to the executive.
In this part of town, Thames St is the border with Box Hill, considered Melbourne’s second city, with a skyline of residential and commercial skyscrapers, is 14 kilometres east of the CBD.
Healthscope sheds historic Hobart hospital
Meanwhile after nearly two years on the market, Healthscope has shed Hobart’s ex-St Helen’s Private Hospital.
The 4622 sqm amalgamation with 6198 sqm in numerous buildings, including a historic hospital, and 55 car parks, is speculated to be trading for over $6 million, sources say.
For much of the campaign, the property was being advertised seeking offers over $7m.
Healthscope closed the hospital in mid-2023 after 96 years.
In 2020 it applied to replace the holding with traditional residential and student accommodation.
Elders’ Richard Steedman and Scott Newton were the agents.
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