Three vacant Melbourne healthcare properties have been snapped up by owner-occupiers for a combined $13.8 million in the past three weeks.
The sales in Ivanhoe, Brighton and St Kilda East comes amid significant interest in the sector, with each property purchased by an owner with plans for immediate occupation or future occupation pending minor refurbishment and repositioning works.
A 5,345sqm residential facility at 405-413 Upper Heidelberg Road, Ivanhoe, headlined the sales at $8.62m, with the property sold by BlueCross Aged Care to an international healthcare and residential services provider.
Clinics at 390 Bay Street, Brighton, and 338 Dandenong Road, St Kilda East were purchased by a local vet and GP, respectively.
The highly-anticipated Warburton Hospital has also entered due diligence with CBRE’s healthcare and social infrastructure team, which managed each of the transactions.
“Quality owner-occupier and investment opportunities within metro Melbourne, particularly the eastern region are few and far between, so when properties like these three come to market they’re hotly contested,” said CBRE healthcare and social infrastructure manager Josh Twelftree.
“All three were transacted at a price comfortably above reserve, which is a testament to that demand.”
The Ivanhoe and St Kilda East assets were transacted via Expressions of Interest campaigns, while the Brighton property was sold one day before its scheduled auction, following strong and contested early interest.
“Healthcare investments have traditionally been very popular among investors, and this is increasing at a rapid rate, but vacant properties suited to medical use or with an existing permit remained more of a niche,” added CBRE healthcare and social infrastructure negotiator Marcello Caspani-Muto.
“However the strength of our country’s healthcare market over the past 12 months has really fuelled demand for these vacant properties in 2021, with interest levels as high as our team has seen in the past five years.”