Geelong hospital operator looks to capitalise on hot medical demand
St John of God Healthcare is selling off its ground floor tenancies at the Granada Medical Centre at 88 Myers St, Geelong.
A Geelong private hospital operator is offloading parts of a landmark CBD medical centre as the medical sector continues its hot streak in the commercial property market.
St John of God Healthcare is selling the ground floor tenancies within its Granada Medical Centre building at the corner of Moorabool St and Myers St.
The two tenanted investment properties are at Lots 2-3 and Lot 4/88 Myers St, Geelong.
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Each property carries price expectations of $1.3m, with agents revealing yields of 6.1 per cent for the single tenancy, while the dual tenancy is quoted at 7 per cent.
Burgess Rawson agent David Napoleone said a relatively short weighted average lease expiry was behind the higher yield for the dual occupancy property, given the present leases expire in 2025 and 2026.
St John of God Healthcare is selling off its ground floor tenancies at the Granada Medical Centre at 88 Myers St, Geelong.
“They’ve got an option for 2030 and 2031 and there’s really no reason for them to go anywhere else,” Mr Napoleone said.
“They all work with each other. I can’t see why any of these tenants that we’ve got there would ever want to go anywhere else because you want to be surrounded by other medical complementary users and it’s the pick of the bunch on the ground floor.
“Medical has probably been one of the hottest sectors in our portfolio auctions recently,” he said.
“We’ve had a lot of interstate and local buyers buying these and I probably expect Geelong won’t be too dissimilar.
Geelong Breast Clinic clinical director Dr Linda West Corio MP Richard Marles the results mammogram at the official launch of the clinic at St John Of God Geelong private hospital. Picture: Mark Wilson
“Because you’ve got the allied health building there, it’s surrounded by medical so I think that really probably gives buyers a lot of confidence on that.”
Geelong Breast Clinic, operated by Lake Imaging, which is owned by ASX-listed Integral Diagnostics, occupies the prime ground floor consulting suite, paying a net rent of $79,090 a year, plus GST.
Deputy Prime Minister Richard Marles helped officially open the clinic in 2022.
Australian Clinical Labs and Kiddies Eye Care occupy the neighbouring suites, where the estimated net income is $90,920 a year, plus GST.
The high-profile medical investments will be offered individually at the next Burgess Rawson portfolio auction at Melbourne’s Crown Casino on May 14.
