Cheltenham day hospital booked in for auction
Cheltenham’s Chesterville Day Hospital could be a healthy investment for buyers, put up for sale just weeks before the federal election.
The day procedure centre at 26-28 Chesterville Rd is the first hospital in Victoria to hit the market this year and it’s attracting plenty of attention.
CBRE agent Sandro Peluso says buyers have shown interest in securing the surgery for more than $5 million.
Commercial Insights: Subscribe to receive the latest news and updates
The hospital could reel in more than $5 million under the hammer in June.
It’s in a busy spot, directly opposite Southland and the train station.
“Investors will be attracted to the property’s recent and well-funded fit out, its convenient location and the security of a national tenant in Cura Day Hospitals Group,” Peluso says.
Associate agent Josh Twelftree says a Labor victory at the upcoming election will benefit the buyer.
“We should start to see more private health facility users, with Labor’s pledge to cap private health insurance premium rises to no more than 2% per annum over the next two years, driving investor demand for assets like Cheltenham,” Twelftree says.
Recent upgrades to the facility have added to investment appeal.
A 10-year lease with one of Australia’s leading hospital facility providers ensures an annual income of $282,487.
It’s set in one of Cheltenham’s busiest spots, just across the road from Southland shopping centre and the train station.
It’s Victoria’s only operational hospital listed for sale so far this year. The last sale was Kew’s Cotham Private Hospital, which changed hands for close to $15 million after it shut down operations last year.
Cotham Private Hospital sold to a residential developer last year.
It’s expected to be bulldozed and transformed into apartments by developer Hamton.
Chesterville Day Hospital became part of the Cura Day Hospitals Group in 2009. It has 30 doctors, two theatres and 10 recovery room beds. A new fit-out has added state-of-the-art specialised equipment and a 17-space car park.
The 1172sq m block is scheduled for auction on Thursday, June 6.
This article from Leader Newspapers originally appeared as “St Kilda Football Club’s Moorabbin base to benefit from council buy”.
