JLL has brokered two off-market sales of Adelaide medical centres and has brought another to market, highlighting a strong investor appetite for high-quality healthcare properties.

An expressions of interest campaign has launched for the sale of 84 Shipsters Road, Kensington Park. Positioned in a sought-after location just 4km east of the Adelaide CBD, the facility is leased to Kensington Park Medical Practice and Clinpath Pathology, generating a net income over $135,000 per annum. The property provides a flexible layout catering to a range of medical services including general practice, day surgery and specialist health services.

JLL’s Jack O’Leary, Director – Sales & Investments SA, said the sector’s stability and secure rental returns continue to attract a broad range of investors, from syndicates and funds to private investors.

“Medical assets are increasingly being recognised as a core investment class, offering long-term leases, strong tenant covenants, and resilience against economic downturns. The combination of population growth, increased healthcare demand, and government support for medical infrastructure makes this sector a standout performer,” Mr O’Leary said.

The recent off-market sale of 216 Old South Road, Old Reynella is a good indication of the sector’s strength. The 2,000-sqm site, improved with a purpose-built medical facility, was sold for $4.45 million this March, reflecting a strong sale rate of $5,115 per sqm and a yield of 6.05%.

The property is fully leased to Reynella Family Care and BDK Health, long-standing tenants who provide a range of essential healthcare services to the local community. With a Weighted Average Lease Expiry (WALE) of 2.4 years and multiple renewal options, the asset attracted strong interest from investors seeking secure income streams.

In a slightly higher price bracket, JLL recently sold the Trinity Gardens Medical Centre at 206-208 Portrush Road for $6.45 million. The 874-sqm facility, situated on a substantial 2,339sqm landholding with high exposure on a major arterial road, has changed ownership for the first time since its completion in 2016. Fully leased to IPN Medical Centres Pty Ltd, Australia’s largest medical centre operator, the property generates a gross annual income of circa $460,000 with fixed 3.5 per cent annual increases.

Tom Love, Executive – Sales & Investments SA noted that medical continues to be a resilient asset class poised for sustained growth 

“Medical real estate has emerged as a formidable asset class, offering investors a compelling combination of stability and growth potential. With government support for medical infrastructure and the essential nature of healthcare services, we expect this sector to continue outperforming many traditional property classes in the years to come.”

84 Shipsters Road, Kensington Park is being offered for sale via Expressions of Interest campaign, closing on Thursday, 27 March 2025 at 4:00pm (ACDT). 

Related Readings 

EG Funds enters Healthcare Real Estate with strategic Gold Coast acquisitions - JLL | Commo.

More healthcare assets for sale and sold