A property syndicate hopes to bank more than $10 million from the sale of Geelong Private Medical Centre, three years after snapping up a bargain from receivers.
The 10-year-old property at 73-79 Little Ryrie Street, Geelong was listed for more than $30 million and boasts a 4,937sq m of lettable area, 174 vehicle carpark and airbridge connecting it to Geelong Private Hospital.
The syndicate headed by a Mrs Wang, purchased the property for $17.8 million in 2017 from Singapore-based OUE Lippo Healthcare who paid $28 million for the property three years earlier.
NAB accepted the offer for the SGX-listed health real estate investment trust property as it covered the $16.5 million mortgage, and two St Kilda Road offices were also sold by receivers for a total of $117.75 million.
Geelong Private Medical Centre has a potential annual net rent income at $2.25 million according to CBRE’s healthcare and social infrastructure team of Jimmy Tat, Sandro Peluso, Josh Twelftree and Marcello Caspani-Muto.
“When it was purchased in 2017 it was more than half empty,” Tat said.
“Now its a good time [for the vendor] to divest and look at other opportunities.”
The syndicate own a number of other properties in Victoria.
Peluso added this listing represented one of the most significant sub-$50 million Victorian health sector assets to be publicly marketed since 2018.
“In the midst of Covid-19, the healthcare sector has arguably been one of the stronger performing sectors, showing returns of between 4-6 per cent and the trend is likely to continue in 2020,” Peluso said.
“Healthcare investments are sought after for their low levels of risk during exposure to market downturns and recessions.
“The youth of the building, which will allow for more depreciation benefits and lower expected capital expenditure cost when compared to older properties, is expected to appeal strongly to investors–particularly given the short supply of quality investment opportunities across several asset classes.”
Nearby at 137 Mercer Street, plans for Geelong’s new civic precinct were unveiled to consolidate nine council offices into one cross laminated timber building with construction expected to commence in June.