A Singapore-based investor has purchased a 70-bed facility at Boronia in Melbourne’s east at $11,300,000 on a record yield of sub 6 per cent

Medical and Aged Care Group currently holds a long-term lease on the facility at 7 Coogee Street, which sits upon a land parcel of 6,300 square metres and is zoned General Residential Schedule 1. 

The sale was managed by CBRE’s Healthcare and Social Infrastructure team of Jimmy Tat, Marcello Caspani-Muto, Sandro Peluso and Josh Twelftree.

Mr Caspani-Muto said the sale reflected the strength of the emerging freehold aged care sector, noting that they had observed particularly aggressive investment sentiment toward opportunities within the space.

An aerial view of the centre. Source: CBRE

“For a segment of the market that has been chronically undervalued in years gone by, there is a strong buyer pool developing," he said.

“With 20 per cent of the country’s population forecast to be aged over 65 by 2037 (up from 15 per cent at present) and government funding generating circa 72 per cent of revenue for the sector, the underpinning factors for successful investment are all in place.”

Mr Tat said CBRE expected activity in the aged care space to pick up as the market continued to grow and garner more mainstream media and investor attention.

“We think traditional yields of 7-8 per cent will sharpen in the next 12-18 months, which will add to the continual uptick in market activity," he said.

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