Three medical centres sold under the hammer

Three medical centres sold under the hammer
Three medical centres sold under the hammer

Three medical centres went under the hammer at Burgess Rawson's 100th portfolio auction, with yields in the 5-6% range.  

The property at 1, Nettleford Street in ACT's Belconnen is leased out to Top 100 ASX-listed Primary Health Care Ltd and netted $8.65 million.  

It was second on the auction list and opened with a bid of $6.5 million.

The building spans 1,725 square metres and is fitted out with treatment and x-ray rooms, dental surgery and a pharmacy.

The land area is 9,706 square metres with parking space for 60 cars.

The asset's annual net income is estimated at $483,346, translating to a yield of about 5.6 percent. The rent increase is 3 percent.

The lease was recently renewed for 10 years with a five-year option expiring in early 2030.

The tenant pays all outgoings, including management fee.

Belconnen suburb has a population of 95,000 and growing.

The other two medical centres auctioned were in the suburbs of Sydney.   

The first, in Dee Why, is leased to PRP Diagnostic Imaging, and fetched $2.9 million.

The 5&6/812 Pittwater Road property is set on 417 square metres, with a lease that expires in 2020.  

Set in the Northern Beaches, the property has prominent exposure to a six-lane arterial road.

The estimated net income is $195,132 per annum, with the yield working out to 6.7%.

PRP pays all outgoings, including management fee.

The annual rent increases to greater of CPI or 4%.

The property at Hawkesbury Road in Westmead is leased out to ASX-listed Laverty Pathology and was the centre of much drama at the auction.

Bidding started at $1.2 million and each time the hammer was about to strike, a fresh offer was made. This went on for at least five times until the hammer finally came down at $1.815 million. 

The pathology centre at Unit 6 of 151-155 Hawkesbury Road is leased out until 2019 end.

This medical centre is spread over 133 square metres of space and is part of a building occupied by medical specialists.

With an estimated annual net income of $107,780, the yield works out to around 5.9 percent.

The lease comes with annual CPI rent increases.

Laverty Pathology serves more than 4 million patients every year. 

All the properties were sold by Darren Beehag and Dean Venturato.

Beginning in 1975, Burgess Rawson established a nationwide network of offices and is Australia's largest locally owned and operated commercial property agency, marketing more than 10,000 properties and generating sales in excess of $25 billion over the past 40 years. fro more information, click here.

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