A prominent medical centre in Perth’s western suburbs with a long and rich history has sold for $9.1 million, demonstrating the strong demand for quality healthcare assets.

The two-storey property at 91 Hampton Road in Fremantle, called the Ellen Health Medical Centre, consists of a 1,131sq m building on a 1,508sq m site.

It was purchased for $9.1 million following an Expressions of Interest (EOI) campaign run by Knight Frank agents Cory Dell’Olio, Tony Delich and Sam Biggins on behalf of a private vendor.

The Fremantle building has a long history, having originally been built in 1937 and operated as Beacon Theatre before having other uses including a supermarket.

In 2014 the character building, which has frontage to both Hampton Road and Wray Avenue, was renovated to become a purpose-built medical centre.

The historic building was decorated with a Commendation from the City of Fremantle for its renovation, which included works such as roof replacement, new windows to replicate heritage requirements, installation of a new medical lift and shaft and 700sq m of alterations to the internal footprint which included new internal walls, ceilings and bathrooms and works to a new car park.

Major tenants occupying the building include Brecken Health, APM Group and 777 Pharmacy. There are retail and medical tenants on both levels, including 777 Pharmacy, Lifecare Physio (owned by APM Group), Touch Therapy Massage, Café on Hampton and Ellen Street Family Medical Practice (owned by Brecken Health).

The net income for the property is $615,192 per annum, with a WALE of 4.1 years based on income as at May 2024.

Mr Dell’Olio said strong investor interest was received during the EOI campaign for the property, with the asset’s solid fundamentals appealing to buyers.

“We had enquiry from both local and interstate buyers resulting in four offers,” he said.

“The property is well known, in a prominent location in Fremantle, which is one of Perth’s most iconic and popular suburbs.

“It’s also situated close to a wide clientele base for the busy medical centre, being close to White Gum Valley, Beaconsfield and Hilton.

“In addition to its location, the strong tenant covenant was appealing to investors, with the property having a wide range of quality tenants.”

Mr Biggins said healthcare assets were proving to be highly sought after by investors in the current market.

“We have seen several quality healthcare assets change hands in recent months, with investors increasingly attracted to this sector due to strong demand, appealing lease terms, defensive attributes and a favourable risk-adjusted return profile,” he said.

“This Perth asset ticked all the boxes, having a solid tenant profile and long-term growth potential.”