Parkdale aged care investment sells for $9m

A dining room within the 60-bed facility at 43-45 Herbert Street, Parkdale.

A modern aged care facility – with Parkdale Beach at the end of the street – is speculated to be selling to an offshore investor for c$9 million – a price which would reflect a c5.7 per cent yield.

The triple storey 60-bed complex at 43-45 Herbert Street, Parkdale, was offered with a new 15-year lease.

In 2035, the occupier can exercise the first of its two five year (renewal) options.

As part of the rental agreement, the tenant pays outgoings – except for land tax, as this property is exempt.

The site, 23 kilometres south east of Melbourne, occupies a 2004 square metre plot zoned General Residential 2.

Marketing agents – Savills’ Julian Heatherich, Mark Stafford and Benson Zhou with Amicum Agents’ John Newman, Glen O’Brien, Phil Kadletz, declined to comment about any deal (story continues below).

Deal latest in a string for Melbourne aged care investments

The Parkdale deal comes four months after Japara sold another south east Melbourne aged care investment with a leaseback, in Springvale, for $13.4m.

In February a Singapore based buyer outlaid $11.3m for a 70-bed and near-new complex in Boronia, 29kms east of the city. Like 43-45 Herbert St, this asset was offered with a 15-year lease.

Two years ago, Baptcare acquired three aged care investments in regional Victoria from Alliance Care Services Group. Blackburn’s Crofton House sold, too – again to an offshore buyer, for c$8.5m.

Presently, Japara is seeking to sell two more south east Melbourne assets of this type, in Capel Sound – the new name for Rosebud West – and Bonbeach.

The Parkdale property (outlined) is about 400 metres from the beach and 23 kilometres from the city.
The occupier pays annual rent of $517,000 plus GST and outgoings.

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Marc Pallisco

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