Dental clinic portfolio offers national investment for investors

The portfolio includes 10 dental clinics across Sydney, regional NSW and Tasmania.

Regional investors looking for a new commercial opportunity have expressed their interest in a national portfolio of dental clinics arriving to market.

Situated across both metro and regional NSW and Tasmania, the portfolio includes 10 dental clinics, a laboratory and a dental supply company.

The Experteeth Dental Property Group has made its portfolio available via Colliers – providing a premium investment opportunity in established locations such as Chatswood, Eastwood, Roseville in metropolitan Sydney and Dubbo and Narrabri in regional NSW.

Investors are being offered the opportunity to purchase a national dental portfolio.

There are also clinics in Burnie and Deloraine in Tasmania.

Offered to the market via Colliers’ John McCann, Andrew Bui, Tom Appleby and James Mullin, the portfolio gives potential buyers a 3.5 per cent annual rent increase and an essential service covenant.

Mr McCann said the fully leased net income per annum for the opportunity sat around $722,000.
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The fully leased net income per annum for the opportunity sat around $722,000.

“During a period of volatility across the vast majority of Australia’s investment markets, premium investments such as medical have been an area of focus for many,” Mr McCann said.

“Typically secured by a strong tenant covenant on a long lease term, we have witnessed a surge in appetite for essential service assets which offer investors cash flow security and a return far greater than savings or idle cash in the bank.”

The portfolio is for sale via an expressions of interest campaign closing 15th November and also includes a graduate program and an attractive 10-year WALE and diversified income stream with a mix of office, retail and warehousing.

Medical commercial investments have been resilient against changing market conditions.

According to Mr Bui, high performance medical investments tended to be resilient and attractive for investors despite changing market conditions.

“As a result of the current economic environment, uncertainty and volatility throughout equity markets, Colliers have been overwhelmed by the demand from local investors, self-managed super fund, syndicates and institutional grade investors seeking city, metropolitan and regional assets sub-$20m,” Mr Bui said.

“Flight to quality has been an ever-present trend and proven strategy for wealth creation and preservation extremely impacting real estate markets, and the demand for core, defensive assets has only intensified.”