Ryman Healthcare pays Steller $28.5 million for Highett site

Aged care accommodation provider Ryman Healthcare has acquired its 11th Melbourne site in five years.

The listed New Zealand based company is paying failed developer Steller $28.5 million for the 1.2 hectare block in Highett (pictured, below), about 16 kilometres south-east of the city centre.

Steller paid $20 million for the site in two tranches last year, later winning approval to replace the block with a retirement village with 90 apartments and 15 assisted living units.

A 122-bed aged care facility was also permitted to be developed on the site at 32-40 Graham Street.

Savills directors Julian Heatherich, Benson Zhou and Jesse Radisich said their public sale campaign attracted multiple bids from aged care and retirement accommodation providers.

Steller sold the 1.2 hectare Highett block (shaded) to Ryman Healthcare for $28.5 million.

“The Bayside area is one of Melbourne’s most highly sought inner suburban locations due to its abundance of lifestyle amenity, thriving café and culinary culture and public transportation links,” Mr Heatherich said.

“Securing sites of this scale in the area is becoming increasingly difficult”.

Earlier this year, Ryman Healthcare acquired a 2.2 hectare tavern and garden centre in Mount Dandenong Road, Ringwood East, which is set to make way for a retirement village.

Elsewhere in Melbourne, it controls sites in Brandon Park, Burwood East, Coburg, Essendon and Mt Martha.

Ryman Healthcare controls two properties in Wheelers Hill, including the Weary Dunlop retirement village – its first Melbourne investment.

In 2016, the aged care accommodation provider paid Melbourne Business School almost $40 million for the historic Moondah Estate, in Mt Eliza – an 8.9 hectare holding once owned by Sir Reginald Ansett.

Ryman Healthcare also owns a 3.2 hectare site at 157 South Valley Road, Highton, in Geelong.

Steller offloaded this Highett office (outlined) for $3.4 million in June.

In June we reported, exclusively, that Steller banked $3.4 million selling a two level office investment at 260-264 Highett Road, Highett, permit-ready for it to be replaced with a three storey office.

Last month we reported, exclusively, that Steller sold 60-62 Nightingale Street, St Kilda, for $1.85 million. Steller paid $2.4 million for this 301 sqm site in 2017 before obtaining a permit to replace it with a five-floor office.

Other Steller-controlled development sites are for sale in East Keilor and South Melbourne.

The historic Continental Hotel in Sorrento was also listed a couple of months ago. Steller entered a joint venture agreement to replace the site with the land owner, Julian Gerner, in 2017.

The Continental redevelopment began last year but ceased before Easter following construction funding woes affecting several Steller projects.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco
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