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.