A new, purpose-built and securely leased medical centre sold to Centuria Healthcare for its Centuria Healthcare Property Fund (CHPF) for circa $28.6million. Sunbury Medical Centre at 38-44 Gap Road Sunbury Sold on behalf of Racing West Pty Ltd was negotiated by Colliers’ Shalain Singh.

The two-year-old medical centre is situated in a high profile corner location with frontage to Gap Road and Pasley Street in Sunbury and is 100% occupied with high-quality tenants on predominantly triple net leases.

The 2,237sqm property is located on a 4,014sqm site with a net lettable area of 1,884sqm. There are 71 dedicated onsite carparks and a diverse tenancy profile including a large general practice, pathology, psychology, radiology, heart imaging and diagnostics, cosmetic laser and beauty, dietetics, podiatry, physiotherapy, legal and chiropractor services. It has a number of visiting specialists.

“The transaction sets a record price for an outer suburban, multi-tenanted medical asset at a 4.5% capital rate, reflective of the flight to stable, quality assets particularly within the healthcare sector,” Mr Singh said. “Interest in healthcare assets has grown markedly over the last three years, with an even greater focus stemming from the impacts of the COVID pandemic.

“As a result, assets like the Sunbury Medical Centre are fiercely sought after as they provide a solid return, backed by strong demographic and operational fundamentals. Unsurprisingly, capital rates have seen significant compression over the last two years in particular, with the trend likely to continue for quality assets.

“Centuria Healthcare has made a great strategic acquisition, given the faciity services some 43,000 people within the catchment with little competition.”

Racing West Director, Neville Moller, said: “We are happy with the sale and believe Centuria Healthcare will manage this asset very well into the future for all stakeholders. Our association with Colliers, in particular, Shalain has been nothing but highly professional and his advice and management of the sale has been exceptional.”

When asked about the sector outlook, Mr Singh said: “Healthcare has now become the alternate asset class for investment and as such, factilities and operations of high quality across the healthcare spectrum will continue to be highly sought after.”

To request a sales analysis please contact the Colliers selling agent Shalain Singh Colliers via the below contact details.