A portfolio of three suburban care assets in South Sydney has sold for a total of $11.2 million following strong buyer demand in the post-COVID environment.
The portfolio included 9A Griffin Avenue in Bexley, known as Griffin House; 1-5 Verdun Street in Bexley; and 34 Bayview Street in Arncliffe.
Knight Frank agents Mark Litwin and Anthony Pirrottina sold the portfolio to a local private investor acting under instructions from Phil Carter and Daniel Walley of PwC as Receivers and Managers.
The Griffin House property was a tenanted two-storey residential dwelling on a 548sqm site, which has been refurbished to accommodate participants under the National Disability Insurance Scheme (NDIS).
The Verdun Street property was an existing three-level vacant purpose-built 111 bed licensed aged care facility in South Sydney with over 65 rooms on a 2,733sq m site.
The Bayview Street was a two-storey 33 aged care room facility past its useful life, on a 1,250sq m site with redevelopment potential. It had development approval obtained to carry out build works to provide Specialist Disability Accommodation.
The Bexley properties at Griffin Avenue and Verdun Street were neighbouring, and despite being on one title were pursued by the market as two distinct opportunities.
“Strategically positioned close to the Kogarah Train Station, and localised shops and services, Griffin House presents as an excellent opportunity to invest in a funded mechanism with strong underlying land value,” said Litwin.
“The asset offers exceptional location fundamentals that services the day-to-day needs of residents, being close to amenities as well as the St George Public and Private Medical Precinct. It also has a range of potential high-value uses permissible within the existing R2 Zoning including a childcare centre, educational establishments, health consulting rooms, seniors housing and places of public worship.”
Litwin said the purpose-built aged care asset at Verdun Street was in excellent condition with contemporary operating features including on-site laundry, staff parking, and loading areas.
“Recently renovated, this asset is strategically positioned close to the nearby medical precinct of St George private and public hospitals, with proximity Kogarah Station and Kogarah Town Centre shops and services,” he said.
“This asset had the potential to consolidate with Griffin House to add rooms and increase operational efficiencies, and also has potential reuses, just like its neighbour. “The site is well positioned in a valuable underlying corner landholding with triple street frontages and multiple points of access and egress via Verdun Street and Griffin Avenue.”
Pirrottina said the Arncliffe property was the site of a two-storey former residential aged care facility constructed circa 1970s, and consisted of small private rooms and multi bedded rooms, communal lounge, dining rooms, kitchen, laundry and staff areas.
“This purpose-built aged care facility has since been converted and used for the purpose of a Supported Independent Living group home, but the improvements are ripe for renovation, refurbishment or repositioning with potential to convert to alternative uses,” Pirrottina said.
“Development approval has been obtained to carry out build works to provide Specialist Disability Accommodation, but as yet no work has been undertaken. Underpinned by high-value planning controls and a flexible R3 Medium Density Residential zoning, the land lends itself well to the existing aged care improvements, adaptive re-use, or new development. Additional potential development uses include townhouses, childcare, boarding houses and duplex homes.”
The Arncliffe property is close to the Banksia Train Station, bus stops and retail village.
Litwin said care-related properties had proven to be resilient investments over the past few years, both during and after the pandemic.
“With government funding underpinning many care assets through various funding mechanisms, as well as an ageing population, they will continue to perform well and be in high demand,” Litwin said.
“There is aggressive capital seeking alternate asset classes for diversification, as well as strong returns, and care-related assets also provide the socially conscious investors with another benefit. This is an increasingly emerging market that will continue to grow and attract the attention of investors. Assets that offer both secure income as well as reuse or redevelopment opportunities will be particularly sought after.”