A premium medical asset in Dandenong has sold for $11.68 million, reflecting a sharp yield of just 3.55  percent. 

Burgess Rawson's Jamie Perlinger, Zomart He, Justin Kramersh, and Rob Selid facilitated the sale. 

Located at 1480-1492 Heatherton Road, the fully leased medical facility features a brand new 20-year  lease to Monash Health until 2044, with 5 further 15-year options extending to 2119.  

Monash Health is one of the largest health providers in Victoria occupying 40 locations, providing care  for over 3.6 million incidents within the community annually.  

The lease term ensures strong income growth with fixed annual, compounding 3.0 per cent increases.  

Situated on an 8,896 square metre site with triple street frontage, the asset comprises a significant two level medical facility, support buildings, two residential buildings and 93 on-site car spaces.

Strategically positioned with easy access to major arterials such as Frankston-Dandenong Road,  Monash Freeway, South Gippsland Highway/Freeway, and Eastlink, the property boasts 116 metre  main road exposure to Heatherton Road, servicing 26,000 vehicles passing daily.

Mr Perlinger highlighted the property's proximity to crucial social infrastructure, with total health  spending within a three kilometre radius amounting to $63.6 million in 2023, alongside over 259,000  GP visits. 

The City of Greater Dandenong, home to 164,484 people, is expected to see a 15.4% increase to  189,891 by 2036, supporting 114,506 jobs with an annual economic output of $57.2 billion. 

The transaction follows Burgess Rawson’s recent $24 million sale of a health asset in Bridge Road,  Richmond – one of the largest health assets to sell under the hammer. 

Mr He emphasised the significant interest the property garnered with the asset selling to an Asian  investor seeking a generational investment opportunity. 
“It was a record result, achieving the lowest yield for a Victorian health asset worth over $10 million,” he  said. 

Burgess Rawson data shows there has been a remarkable surge in medical sales activity this year the  first quarter of 2024 recording $63,831,000 in sales, marking a 325 percent increase over the March,  2023 quarter. 

Mr Perlinger said this surge signifies a significant change in investor sentiment towards the healthcare  sector, driven by rising demand for healthcare services, technological advancements, and the sector's  resilience. “Healthcare real estate is increasingly recognised as a stable and profitable investment  option.”