Benetas sells aged care facility in Melbourne for $19 million through Savills

Aged care not-for-profit group Benetas has sold its redundant East Brighton respite facility to another aged care provider for $19 million, some 75 percent over the reserve price, in a deal brokered by Savills.

The ageing baby boomer population is driving the market for aged care facilities and properties, according to Savills’ Clinton Baxter, who managed the expressions of interest campaign with Julian Heatherich and Jesse Radisich. 

The 68-76 Union Street property is close to the East Brighton retail precinct and the Nepean Highway, and walking distance to parks and recreation facilities. 

It comprises a 5,751 square metre site, zoned Neighbourhood Residential.

Baxter said 10 offers were received and competition between three leading aged care providers pushed the price well beyond the vendor’s expectations and achieved a record land sale rate of $3300 a square metre.

"The most significant driver has been the growing demand from the cashed up Baby Boomer generation and that is only going to continue as more of that generation reach retirement and beyond,’’ Baxter said.

Heatherich said the latest research from Leading Age Services Australia suggested 60,000 more residential care places were needed, along with infrastructure investment of $30 billion by 2025.