Medical Investment | $737,000 | Net Yield: 5.91% | WA

This Western Australian medical investment secures a self-contained consulting suite within a purpose-built commercial centre in Currambine, an established coastal suburb in Perth's northern corridor positioned between the Mitchell Freeway and the beach. The suite has been occupied by the same podiatry tenant since 2016, shortly after the centre was completed.

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At a purchase price of $737,000, the investment generates approximately $43,549 in net annual income, delivering a 5.91% net yield. All outgoings, including management fees, are recoverable from the tenant, with only a minor strata special levy excluded.

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The suite is leased to My FootDr, the largest podiatry group in Australia with more than 116 clinics nationally. Founded in 2004, the group provides general and sports podiatry, custom orthotics, diabetic foot care and lower-limb treatment. The tenant has invested in its own fit-out and has operated from the premises for around a decade.

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Rent increases by a fixed 4% each year. The current term runs to October 2027, followed by a further three-year option to 2030 that includes a market rent review. No bank guarantee or bond is currently held, so the tenant's long occupation, fit-out investment and established patient base are the main supports for renewal.

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The suite comprises approximately 127 sqm on the first floor, with its own bathroom and kitchenette, plus access to a shared balcony. It forms part of a 15-unit, two-level strata centre on a 3,397 sqm site with approximately 53 shared car bays and further parking nearby. Completed in 2015, the building may offer depreciation benefits, subject to individual tax circumstances.

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The purchase reflects approximately $5,803 per sqm, below recent medical and consulting sales in the surrounding northern suburbs, which have ranged from approximately $6,699 to $8,491 per sqm. Passing rent of approximately $343 per sqm sits broadly in line with comparable leasing evidence nearby.

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Currambine is a tightly held suburb with limited remaining infill land. Median household income sits around 22% above the state and national medians and the median age is 40, a profile that supports ongoing demand for allied health services. Currambine Central, with more than 40 stores including Woolworths and a cinema, anchors the local town centre, and the wider catchment takes in Joondalup, Burns Beach, Kinross, Iluka, Connolly and Ocean Reef. The Mitchell Freeway, Marmion Avenue and Currambine Station provide strong access.

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Accounting for estimated purchasing costs, the net yield equates to approximately 5.49%. Based on an assumed 65% loan-to-value ratio and 6.5% annual interest rate, the property is projected to generate approximately $12,411 in annual cash flow after mortgage interest expenses, representing an estimated 3.96% cash-on-cash return on the total cash contribution of $313,524.

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These figures reflect acquisition modelling assumptions and are not guaranteed returns.

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With a national allied health tenant, fixed 4% annual increases, fully recoverable outgoings and an entry price below recent local sales, this investment reflects the calibre of commercial property Rethink Investing continues to secure for clients across Australia.

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