A high-performing, state-of-the-art healthcare investment occupied by Bupa’s Dental Corporation and in a thriving suburban Melbourne location has hit the market.
Fitzroys’ Chris Kombi, Lewis Waddell and Ben Liu are marketing 150 & 152 Canterbury Road, Blackburn on behalf of a private investor who has held the property for more than 15 years.
The Expressions of Interest campaign closes on Thursday, 15 October at 3pm.
Expectations are of $5.8 million-plus.
The property comprises 2 interconnected, fully renovated state-of-the-art buildings plus 22 on-site car parks on a 1,575sqm corner site with a commanding 75m frontage.
It has a secure 5+5+5-year lease to Bupa’s Dental Corporation and operates as longstanding and highly successful dental clinic Healthy Smiles Dental Group, permitted for 12 practitioners, and returning $338,541 per annum plus outgoings and GST. There are fixed 4% annual rental increases, and the tenant pays land tax on a single holding basis.
Founded in 1947, Bupa is a world leader in healthcare services with 38 million customers across 15 countries, and more than 180 clinics across Australia.
“Investors looking for a set-and-forget investment need look no further. A secure lease to a major global tenant in Bupa, a triple-net lease with strong annual rental increases, state-of-the-art improvements, and a large corner landholding in a thriving suburban Melbourne commercial precinct all provide excellent fundamentals,” Waddell said.
“Bupa spent around $2.2 million upgrading the building, so they’re clearly invested in this location for the long-term.
“Healthcare assets have this decade consolidated their standing as one of the most reliable defensive property investment plays. Underlying demand for healthcare services is constantly growing, and the property’s excellent tenancy profile and real estate fundamentals makes this a stand-out in the current market.”
Kombi noted the property is ideally positioned within an established healthcare precinct, surrounded by a variety of medical and allied health practices.
In close proximity are numerous general practitioners, dental clinics, physiotherapy and specialist practices including Vision Eye Institute, Blackburn Public Surgical Centre, Bellbird Medical Centre, Sheehan’s Medical Centre and True Hearing Audiology.
Major retailers in the immediate area include Woolworths, McDonald’s, Australia Post, Bendigo Bank and Chemist Discount Centre, and Forest Hill Chase shopping centre, together with a variety of cafes, eateries, and service-based businesses.
“This shopping and lifestyle offering contributes to strong local activity and offers convenience for both practitioners and patients,” Kombi said.
Liu said the property services a rapidly growing catchment that includes the Box Hill CBD, which is expecting a 47.5% increase in population by 2041, reaching 26,081 residents, while the amenity of Blackburn has seen the suburb’s population growth also outpacing the Melbourne-wide average.
He added that the area is well connected, with Blackburn Train Station just 1.3km to the north and easily accessed via Main Street, providing direct rail links to the Melbourne CBD and the wider metropolitan rail network, while local bus services also conveniently operate along Canterbury Road.