Not for profit sells vacant aged care home
EXCLUSIVE
Mercy Health has sold an inner west Melbourne aged care home it operated until three years ago.
Vacant since then, 286-296 Melbourne Road, Newport, is trading for $5.7 million.
Buyer, Regis, intends to reopen it for aged care.
The deal comes three months since Regis acquired a former Mazda dealership in Keilor Road, Essendon, for a multi-level facility.
Last year meanwhile, it bought two established Mornington Peninsula investments for $103.5m.
“As the volume of vacant aged care homes continues to reduce in market, the buyer profile continues to widen,” CBRE Marcello Caspani-Muto, who marketed the Newport site with Sandro Peluso and Jimmy Tat, said.
“We are seeing greater competition than ever for these assets across a wide range of users which are not always specific to aged care. In this instance there was competition from NDIS users, aged care operators and healthcare owner occupiers,” they added.
“In the end, the highest and best use remained aged care,
“Given the notable undersupply of beds in the area and improved height potential there is exciting potential for this property in the coming years”.
Newport is about nine kilometres from the CBD.
Next chapter for Mercy Place Newport
The deal values each bed at $154,000; the ex-Mercy Place Newport includes 37 rooms with communal areas.
The site spreads 3178 square metre with two adjoining residential dwelling allowing for an extension.
“The value of…improvements continues to demonstrate great returns as more and more people seek the relative ease and immediacy of existing assets,” Mr Peluso said.
“We even had childcare owner occupiers look at the asset to assess the potential of repurposing the building as a single level childcare offering, which would be a first for us in aged care,” he added.
Subscribe to our newsletter at the bottom of this page.
