Six suitors bid for suburban Melbourne medical centre
Six suitors at auction this week pushed the price of a south east Melbourne medical centre to $6.54 million.
The result for the Glen Waverley investment, 218-220 Springvale Road, near the busy corner of High Street Rd, reflects a 4.58 per cent yield.
Also opposite The Glen, the 1490 square metre site contain 25 car parks at the west and north boundary.
A single storey building in the other corner contains 600 sqm.
Just before 218-220 Springvale Rd was listed for sale, Lumus Imaging signed a five year lease with a five year option.
“We had genuine interest from a broad cross-section of private investors, both locally and internationally, with the auction itself becoming highly competitive between six committed parties,” Gross Waddell ICR’s Alex Ham, who brokered the deal with Michael Gross and Glenn Ye, said (continues below).
Longer term development upside
The deal comes nearly a year since the neighbouring property, 222 Springvale Road, also a medical centre investment, on 1115m sqm, sold for $2.58m.
Both sites are identified within the Suburban Rail Loop development plan and can accommodate buildings up to 27 metres or about eight levels. They also sit within Glen Waverley’s retail and health services corridor and associated transport infrastructure.
“Quality healthcare assets continue to outperform due to their defensive characteristics and long-term occupier demand,” Mr Gross said. “When you combine that with a prominent metropolitan location and strong underlying landholding fundamentals, competition is naturally very strong”.
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