Small Melbourne medical centre portfolio sells for $4.4m

The Cranbourne medical centre (highlighted), near Cranbourne Home homemaker centre, sold for just over $1 million on a 5.7 per cent yield.

Five small medical centres leased to Wellbeing Chiropractic, north, west and south of Melbourne’s CBD, have sold to one investor for $4.4 million – a 5.6 per cent yield.

Aston Commercial’s Liam Rafferty and Jeremy Gruzewski said an expressions of interest campaign closed on May 22 generated 21 offers.

All up returning annual gross rent of $261,200 – the weighted average lease expiry of the offering was 5.8 years.

The properties were available individually, too.

Each are recently renovated into brick homes, now rendered grey, and on sites zoned General Residential.

“These properties were excellently received from investors looking for the stability of a tenant who has remained open and trading right through the COVID-19 restrictions,” the agents said.

The priciest asset – 41 Craigieburn Road, Craigieburn, at the Hanson Road T-intersection, adjacent to Craigieburn Plaza, fetched $1.025m, a 5.7pc return.

South of town, 301 South Gippsland Highway, Cranbourne, at the corner of Clairmont Avenue, traded for $1.001m.

A Sunbury property, 31 Barkly Street, exchanged for $858,000 – $9000 more than an Epping medical centre at 841 High Street.

These two suburbs, like Craigieburn, are in the city’s north.

The cheapest property, 118 Barries Road, Melton, 40 kms west of Melbourne, sold for $660,000 and on the lowest yield.

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Marc Pallisco

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

Marc Pallisco