A leading Sunshine Coast private mental health facility in a retreat setting, occupied by Palladium Private, is up for sale.  

The property at 67 McCarthy Road in Maleny is being offered to the market with a 20-year leaseback plus 4 x 5 year-options to Palladium Private, part of the Sana Health Group.  

Sana have treated over 5,500 clients who have completed their programs treating the underlying causes of addiction, depression, anxiety, trauma, PTSD and C-PTSD. 

The facility has significant onsite infrastructure, catering for up to 24 guests across eight private cabins,  plus substantial communal and group therapy amenities. These include a 25-metre swimming pool,  spring-fed magnesium pool, steam room, sauna, gym and a main building for guests to enjoy meals,  yoga, psychology and massage therapy sessions plus dedicated Registered Nurse’s room.  

The property is being taken to the market via an Offers to Purchase campaign run by Sam Biggins of  Knight Frank on a sale and leaseback basis. Sana Health is majority-owned by Genesis Capital, a  leading Australian mid-market healthcare-focussed private equity investor. 

The price guide is $10,000,000, reflecting a yield of 8.00% based on the first year’s rental with the  tenant assuming responsibility for maintenance of the asset.  

Mr Biggins said the Palladium Private facility offered an incoming purchaser a secure income stream backed by private equity over the medium term, but it also has the added benefit of upside through  further expansion. 

“The tenant covenant is strong, and the Vendors have made a substantial investment in the facilities  recently including a major refurbishment and expansion of the accommodation option with new cabins  being installed in 2024.,” he said.

“The facility has operated for more than 20 years and the Vendor’s recent investment has been driven by their desire to ensure the facilities are suitable to their requirements for the long term, with the  property being offered to the market with a 20-year leaseback in place plus options with annual CPI  reviews. 

“A significant proportion of the clientele is supported by government funding, with the client cohort  including veterans who receive support to attend from the Department of Veterans’ Affairs, providing a secure income stream. 

“However the property, which has recently undergone an expansion from 18 to 24 beds, also benefits from an approved development application for the construction of a proposed lakeside group therapy  facility and existing gym extension. 

“The idyllic rural hinterland setting and underling zoning also support alternative uses such as wedding venues, boutique bed and breakfast resort accommodation, winery and small-scale animal husbandry ventures.” 

Mr Biggins said the mental health property sector in Australia had generated substantial investor  interest in recent years.  

“This attraction stems from the sector's solid market fundamentals, driven by demand and influenced by macro-demographic factors.  

“A substantial number of Australians utilise the mental health system, with almost half experiencing  mental ill-health challenges in their lifetime, and there are not enough facilities or health professionals to cater for demand.” 

The Offers to Purchase campaign for the property will close at 4pm (AEST) on Thursday 17th  October. 

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