Major aged care not-for-profit group Benetas has sold its redundant East Brighton, Victoria, respite facility to an aged care provider for $19 million - an extraordinary 75 per cent over the reserve price of $11 million - in an Expressions of Interest deal brokered by Savills.
According to Savills’ State Director, Clinton Baxter who managed the EOI process with Director Julian Heatherich and Associate Director, Jesse Radisich, the ageing baby boomer population was driving a robust market for aged care facilities and properties which could provide development opportunities in the sector.
Mr Baxter said 10 offers were received from both local and off-shore townhouse and aged-care developers with the sale ultimately concluding in an intense contest between three leading aged care providers.
"Competition between these parties has pushed the price well beyond the vendor’s expectations and in the process achieving a record land sale rate of $3300 a square metre for a large bayside property.
"The most significant driver has been the growing demand from the cashed up Baby Boomer generation and that is only going to continue as more of that generation reach retirement and beyond,’’ Mr Baxter said.
The 68-76 Union Street property is located about 400 metres from East Brighton retail precinct and the Nepean Highway, within walking distance of Hurlingham Park, which includes football, cricket and tennis facilities, and Landcox Park, and within a short distance of several schools, Union Street and Hawthorn Road trams and North Brighton railway station.
It comprises a 5751 square metre site, zoned Neighborhood Residential, with extensive frontage to Union Street and further access points via Granter Street and Milliara Grove. The zoning also allows for townhouse development.
Mr Heatherich said the latest research from Leading Age Services Australia (LASA) suggested 60,000 more residential care places were needed, along with infrastructure investment of $30 billion by 2025.
LASA says the percentage of people aged over 65 is predicted to increase by 18 per cent in the next five years, while in the next 35 years, people aged over 85 years will increase, as a proportion of the population, from 1 per cent to 5 per cent, representing a dramatic increase in the age cohort that drives service demand.
Mr Radisich said Savills was currently experiencing enormous demand from the aged care sector for major sites in middle ring suburbs across Melbourne and the result had more than reflected that demand.
He said Benetas, which had operated from the site for many decades, had decided to sell the property as being surplus to its needs.
M3 Property consulted to the vendor.