Medical Investment | $4,024,742 | Net Yield: 6.48% | VIC

A high-quality healthcare investment underpinned by strong medical tenant Medical Select in one of Australia's fastest growing residential corridors. Lot 1, 9-33 Errol Boulevard, Mickleham delivers secure income within a purpose-built medical precinct positioned for sustained long-term demand.

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The property comprises approximately 528 square metres of ground floor lettable area within a modern, high-quality medical and retail centre completed in 2024. Ground floor positioning and prime frontage provide ease of access for patients and strong suitability for medical use. The facility is strategically delivered within a dense residential catchment, ensuring direct access to surrounding population. Near-new construction maximises depreciation benefits whilst minimising near-term capital expenditure risk.

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Leased to Medical Select on a 10-year lease expiring July 2033 with two 5-year options extending potential tenure to 2043, the property generates net income of approximately $260,645 per annum. Fixed annual rent reviews of 3.5% deliver predictable income growth throughout the lease term. The lease structure is net, with the tenant responsible for the majority of outgoings. Non-recoverable outgoings total just $10,846 per annum.

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With a purchase price of $4,024,742.00 and total cash required of $1,740,754.80 (including 35% deposit and purchasing costs), the investment delivers net annual cash flow of $260,645.00 and a net yield on property of 6.48%. When accounting for purchasing costs, the net yield is 5.98%. Return on equity of 5.20% in pure cash flow terms increases to 16.76%, 21.39%, and 28.33% with conservative capital growth assumptions of 5%, 7%, and 10% respectively.

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Completed in 2024, the brand-new purpose-built medical centre maximises depreciation benefits and minimises near-term capital expenditure risk.

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Medical Select is one of Victoria's fastest-growing primary healthcare facility providers operating across Melbourne's northern growth corridors. The business model involves leasing and licensing consulting rooms to independent healthcare practitioners, enabling rapid expansion within high-growth suburban areas. Medical Select now operates across multiple locations including Roxburgh Park, Plenty Valley, Lyndarum, Highlands, and surrounding suburbs.

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Capital-intensive medical fit-outs create high tenant retention. Relocation costs are significant, and established patient bases and referral networks further anchor tenancy. Co-location within a broader medical and service-based ecosystem supports cross-referral, patient retention, and consistent foot traffic, reducing vacancy risk.

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Mickleham is one of Australia's fastest growing suburbs, with population forecast to increase by 132.9% over the next 20 years, driven by major master-planned communities including Merrifield Estate (10,000+ dwellings), Botanical Estate (2,500 lots), and Stockland Highlands (~4,000 dwellings). The property is positioned approximately 31 kilometres north of the Melbourne CBD within the City of Hume.

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The broader Hume region's current population of approximately 271,709 is growing at 3.41% per annum, exceeding Greater Melbourne's 2.74%. The population skews younger, with high proportions under 20 years. Hume City Council is investing a record $558 million over four years across 500+ projects including road widening, community hubs, and maternal and child health centres.

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The property is situated within general residential zoning, providing a built-in customer base while limiting future competing commercial supply. This scale of residential growth and infrastructure investment creates sustained demand for primary healthcare services. The ground-floor positioning within a purpose-built medical precinct in one of Australia's fastest-growing suburbs aligns directly with Medical Select's expansion strategy.

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Secure your next medical investment with our expert team.