Med site for sale at $25m
A KEY building in Geelong’s medical sector is on the market with price expectations around $25 million.
The Geelong Private Medical Centre building at 73-79 Little Ryrie St is selling under the direction of receivers amid corporate turmoil hitting its Singapore-based owners International Healthway Corporation.
Melbourne-based commercial realtors CBRE have listed the investment on behalf of receivers KPMG.
The medical centre and tenants operating within the building are not affected by the sale.
The four-storey building has a total lettable area of about 5000sq m and is capable of netting $1.813 million per annum when fully leased.
It also has a two-level basement car park and a pedestrian bridge connecting to Geelong Private Hospital.
Selling agent Josh Twelftree said big-scale investors were expected to act during the expression of interest campaign closing on December 1.
“We’ll have a lot of insti- tutional investors and some high-net worth investors, maybe some syndicates as well,” he said.
“It will most likely be a larger institutional player such as a Ramsay (Health Care) or an Australian Unity. A lot of those larger listed groups will have a good look at it,” he said.
The site comprises a general practice, consulting rooms, administration offices and IVF suites, and is majority occupied by leading private healthcare provider Healthscope.
“They’re one of the largest operators of private hospitals, they’re the second largest of Australia and they occupy 75 per cent of the building,” Mr Twelftree said.
Co-listing agent Scott Orchard said he expects a competitive sales campaign given Healthscope’s occupation.
“Since its establishment in 1985, Healthscope has expanded to operate approximately 45 hospitals and 48 medical centres across Australia, with over 18,000 employees nationally,” Mr Orchard said.
“Therefore this strong covenant as the major occupier will give buyers confidence in the ongoing stability of the asset.”