Medical Asset Sells After Highly Competitive EOI Process

Posted on 01st November 2023

Local, interstate and offshore buyer competition for a Bentleigh East medical clinic has reinforced the strong attraction of health and medical operator-leased assets to investors.

In the latest deal, Fitzroys agents Tom Fisher and Chris Kombi sold 5 Chester Street, adjacent to Monash Health’s Moorabbin Hospital, for $2.295 million after a highly competitive EOI process.

The 893sqm residential zoned landholding comprises a 215sqm building with five consulting rooms, reception, waiting areas and staff and administration rooms. It has long leases in place to Southern Breast Oncology and Dorevitch Pathology and sold on a tight 5.1% yield.

Fisher said seven Expressions of Interest were received following a campaign that generated interest from local, interstate and offshore investors looking to acquire a health and medical asset. An interstate investor was the eventual purchaser.

“The market liked the property’s positioning within a highly-regarded medical precinct, anchored by Moorabbin Hospital and a wide range of allied health and medical operators, as well as the long lease to quality tenants,” Fisher said.

“The underlying land value of the substantial site was also a driver,” he said.

Fisher said strong levels of enquiry for healthcare investments are continuing in all parts of the market, from private investors through to institutional players.

“Since COVID, healthcare assets have been attractive for investors due to the essential service nature of the business. They have proven themselves to be remarkably resilient and as a result, they have become a growing target for investors at all levels of the market.

“We’re seeing more and more interest from private investors looking to get into the healthcare and medical sector, all the way up to institutional investors diversifying their portfolios towards this part of the market.”