A Sydney based investor group has purchased a major medical, NSW Government and large format retail complex in Warrawong (Wollongong), on the south coast of NSW, for $21 million.

Burgess Rawson’s Geoff Sinclair and Yosh Mendis brokered the off-market transaction.

Mr Sinclair said the quality, newly renovated medical and dental centre offered a highly defensive asset with multiple and integrated medical services including a general practice, dental, physiotherapy, pharmacy, pathology and aesthetics.

Located at 67-71 King Street, the premium 5,259 sqm asset is fully occupied and offered a Net Income of $1,412,569.

Illawarra Shoalhaven Local Health District (NSW Government Health) supports the building servicing over 400,000 residents in the region in addition to a brand-new high spec medical and dental centre trading as King Street Dental and Medical. The property is also home to one of Wollongong City Council libraries and ASX listed Nick Scali’s, Plush Sofas large format retail showroom.

The high-profile highway site offers extensive exposure and a significant landholding of 4,875 sqm with 68 on-grade car spaces strategically positioned on the “Golden Mile” of Warrawong’s King Street.

Mr Mendis said that in recent years, we’ve witnessed a shift to the uptake from investors looking to secure multi-tenanted investment opportunities secured by government and medical tenant covenants providing diversified income steams to secure essential service tenants. 

Geoff Sinclair said, “Healthcare and Social Infrastructure investments are some of the most targeted and sought after commercial assets, with investors attracted to the integrated medical uses within the assets and strong government subsidies in this particular sector”.

Burgess Rawson continues to see a strengthening in the depth of investor demand for bricks and mortar investments providing secure income streams. This has been witnessed in our most recent portfolio selling over $88million of commercial investment property last month,” Mr Mendis said. 

The medical centre is positioned in a thriving suburb. Warrawong is part of the Illawarra region with the suburb only 10 minutes from the region’s metropolitan centre and the added benefit of being bound by Lake Illawarra. King Street in Warrawong. The area is recognised as the core destination for large format retail and bulky goods within the Illawarra region. 

International heavyweight, Fraser’s Property Group have recently opened their new $180 million Marina at Shellharbour, 12km from Warrawong. The marina will serve as the centre for a broader $1.5 billion infrastructure investment in Shell Cove, culminating in a residential estate, shopping centre and boat harbour.

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