A 26.39 per cent strata stake in The Specialist Medical Centre in Sydney’s Westmead is being offered to the market.

The over 25% strata stake in The Specialist Medical Centre includes a three-level freestanding building at 7 Ashley Lane, predominantly leased to long-established tenant The Skin Hospital, as well as adjoining suites 203 and 204 in the neighbouring building at 151 Hawkesbury Road.

The Skin Hospital is a leading facility in Australia for dermatological clinical services, education, research, and clinical trials and is located adjacent to the Westmead Health and Innovation District (WHID), Australia’s largest medical, education and biomedical research precincts.

The 26.39% per cent strata stake represents a strategic holding in the Specialist Medical Centre strata scheme, particularly in the context of the New South Wales Strata Schemes Development Act 2015 which requires agreement of 75% of owners to commence the strata renewal or redevelopment process.  

The stake is being taken to the market via an Expressions of Interest campaign run by Sam Biggins and Jessen O’Sullivan of Knight Frank, working alongside Archerfield Property Group as Transaction Advisors.

Price expectations are for offers in excess of $10m.

The property will be sold with a leaseback in place to The Skin Hospital with a proposed estimated net income of $641,832, with the suites in 151 Hawkesbury Road currently vacant.

Mr Biggins said the property offered an unprecedented investment and future potential development opportunity in an ideal location, adjacent to the Westmead Health and Innovation District.

“The Skin Hospital is located within the strata-titled Specialist Medical Centre, which occupies a keystone 3,279sqm land parcel opposite Western Sydney University and at the southern boundary of the Westmead Health Precinct, which forms part of the Westmead Health and Innovation District.

“The WHID is one of Australia’s largest medical, education and training hubs, and a major key provider of jobs in the Parramatta and Greater Western Sydney region.

“The underlying parcel adjoins the Westmead Light Rail station, which will connect Westmead to Carlingford via the Parramatta CBD.

“It is also 200 metres to the Westmead Train Station and 250 metres from the proposed Future Metro Station.”

Mr O’Sullivan said the offering was an opportunity to acquire a sizeable stake in a strategic holding.

“The Specialist Medical Centre is a premier medical strata asset with significant redevelopment potential, subject to council approvals,” he said.

“The sale and leaseback structure will provide significant income from a long-established healthcare tenant.”

The Expressions of Interest campaign for the property closes at 5pm AEST on Wednesday, 5th June 2024.