A century-old Surrey Hills medical centre has sold for $3.125m after attracting 207 investor groups and nine formal bids in its first sale in 71 years.
A century-old Melbourne medical centre has sold for $3.125m after attracting interest from more than 200 investor groups.
Mont Albert Medical Centre at 201 Union Rd, Surrey Hills, had not changed hands for 71 years before drawing 207 registered groups and nine formal bids.
A local private investor secured the property at a yield of 4.82 per cent.
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JLL senior associate Mark Stafford estimated about 30 per cent of inquiry came from offshore-based investors or locally based groups using offshore capital.
The remaining 70 per cent came from Victorian or interstate buyers.
Mr Stafford said the property had been passed down through a family, with the sale carrying some emotional significance for those involved.
“There were a few parties involved, so there were certainly some family ties to it,” he said.
The practice has served the local community since 1923 and operates from a converted Victorian-style building at the corner of Union and Mont Albert roads.
National medical operator ForHealth recently renewed its lease for five years, with further options that could keep it at the site until 2041.
ForHealth operates more than 90 locations across Australia.
Mont Albert Medical Centre at 201 Union Rd, Surrey Hills, changed hands after serving the local community since 1923.
Mr Stafford said the result showed established health care properties on large landholdings remained highly sought after.
“Good-quality, well-established assets in sectors such as health care, in good pockets with large underlying landholdings, are still highly sought after,” he said.
“The large corner block adds a lot of value beyond the investment itself.”
The medical centre occupies a 1143sq m site with more than 68m of combined street frontage and 10 ground-level carparks.
Its $3.125m sale price equated to a building rate of $11,574 a square metre.
Located within an established medical precinct along Union Rd, the property is surrounded by several specialist health care providers.
The neighbouring property at 203 Union Rd houses the Union Road Specialist Centre, Heart of Melbourne and Melbourne Lipid Centre, while Eastern Gastrointestinal Specialists operates from 205 Union Rd.
Box Hill Hospital and Epworth Eastern are both within 1.8km.
Healthcare properties with long-term tenants continue to attract strong investor demand, with buyers chasing secure income streams across Melbourne.
Mr Stafford said comparable assets rarely became available in Melbourne’s eastern suburbs because many were retained for decades or owned by the doctors operating from them.
“They don’t pop up super frequently, and when they do, they are obviously well sought after,” he said.
“You see the odd physiotherapy or allied health offering, but rarely GP clinics with long-term, stable leases like this.”
The sale followed several major Victorian health care deals completed by JLL during the past 12 months.
These included Sandhurst Medical Practice in Bendigo for $12.3m, Cowes Medical Centre for $10.6m, Belmont Medical Centre for $10.3m and Croydon Medical Centre for $10.2m.
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