Sunshine day hospital to test medical market

Melbourne’s medical property market is heating up with second day hospital put up for sale this year.

The facility at 493 Ballarat Rd in Sunshine is currently leased to the largest gastroenterology and hepatology practices in Melbourne’s west.

The Dr Gastroenterology and Dr Scope practices are on 10-year terms, both with further 10-year options.

Commercial Insights: Subscribe to receive the latest news and updates

The property has an annual $520,000 income with a fixed rental increase of 3% from April 2020.

CBRE specialist healthcare agent Sandro Peluso says the centre presents a rare opportunity, with two facilities hitting the healthcare market in quick succession.

The Chesterville Day Hospital in Cheltenham was snapped up for $5.52 million earlier this year on a yield of 5.1%.

“The recent Chesterville Day Hospital campaign generated strong interest from high-net-worth investors and national medical funds, highlighting a growing demand for premium hospital investments,” Peluso says.

The day hospital is only the second to be put to market in Melbourne this year.

Spanning 1000sqm on a 2130sqm site, the medical building is equipped with two state-of-the-art day surgical theatres, pathology rooms, 10 consulting rooms, an ambulance bay and 21 car parks.

Its proximity to bustling retail and lifestyle amenities, including the nearby Sunshine Plaza, Sunshine Marketplace, Sunshine Train Station and the court precinct,  is also considered a key selling point, according to CBRE’s Josh Twelftree.

“Located within a major activity centre, the property will benefit from the Brimbank City Council’s intentions to make Ballarat Rd the gateway to Sunshine’s town centre,” he says.

The sale comes amid escalating demand for health services across Australia,  fuelling a strong interest in medical property among astute investors.

Buyers are especially attracted to the secure long-term tenancies compounded by the rare appearance of premium facilities on the market.

The expressions of interest campaign closes August 21.