Asset Manager Real Asset Management (RAM) has acquired the Woodbridge Family Practice in Cooloongup, Perth for $6.6 million, with plans to expand the centre in a $30 million redevelopment.
The underdeveloped and underutilised development site, spanning 4,228 sqm, was located adjacent to the Rockingham General Hospital and was currently leased to South Metropolitan Health as an overflow facility for the hospital.
The off-market transaction provided further proof that the health and life sciences sector remained in high demand with solid investment fundamentals.
“RAM was attracted to the lease covenant of the WA Government Tenant in South Metropolitan Health, which provides valuable overflow space for the adjoining public hospital,” RAM Executive Director and Head of Real Estate, Matthew Strotton said.
“We believed the site was underutilised, making the development upside attractive, along with the secure holding income from the Government Tenant.”
Colliers Director of Investment Services, James Baker, sold the property for $6.6 million via an off-market campaign on behalf of a group of private owners. The campaign received three written offers at the close.
“The property proved to be of great interest to several buyer groups,” Baker said.
“The growth in the health and life sciences sector is underpinned by fundamentals such as population growth, ageing population, rise in health expenditure and employment opportunities.”
“The property provides a great opportunity for development with only 1 of the 5 buildings currently leased. And you can’t go past the fact that it sits directly on the doorstep of the Rockingham General Hospital, allowing great connectivity for future development,” he added.