 Asset Class: | Medical |
 Price: | $ 9900000 |
 Net Yield: | 6.10 % |
Net Yield - including solar strategy: | % |
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A prime medical centre investment, built in 2014, spanning approximately 2,493sqm of land. The site benefits from high exposure, with frontages of 56m to Torrens Road and 90m to Addison Road, experiencing approximately 40,000 daily passing vehicles.<br>The 1275m2 property comprises a modern, purpose-built medical facility featuring high-quality internal finishes. It includes ample patient consultation rooms, administrative spaces, and an integrated Guardian Pharmacy at the front. The site offers 50 secure on-site car parks and additional first-floor space for future expansion.<br><br>The property generates a strong net income of approximately $602,681 per annum (from 11th May 2025), delivering a net return of 6.1%. The lease comes with fixed annual rental increases of 3%. The tenant covers all outgoings, including statutory rates, insurance, land tax, and maintenance, ensuring a secure and passive investment. Management fees are non-recoverable, and have been estimated at around $12,000p.a.<br><br>Leased to Family Doctor Pty Ltd, a national medical operator with over 80 centres across Australia. The lease commenced in May 2018 with a 15-year term expiring in 2033, complemented by five further 5-year options to 2058. With Guardian Pharmacy integrated into the site, this provides additional essential services.<br>Situated in the City of Charles Sturt, Pennington is a growing suburb benefiting from its strategic location between the Adelaide CBD (12km away) and the Port Adelaide precinct (3.9km away). The area's evolving demographic and proximity to major infrastructure, including the St Clair residential subdivision, reinforce its long-term investment appeal.<br><br>In order to incentivise investment, the South Australian government have abolished stamp duty on commercial property purchases. This represents considerable upfront savings on this property, approximately $538,330. By factoring this upfront saving into the total upfront price, the effective net return after stamp duty savings becomes a very healthy 6.44%. With good depreciation expected on this property, returns after tax are expected to be further enhanced. <br><br>As the property is owned by a fund, pricing is to be confirmed by the vendor, and must meet internal valuation metrics. Whilst the price is below vendor expectations, market intel indicates this price to be achievable. <br>
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Pennington is a well-established suburb in the City of Charles Sturt, located approximately 12km northwest of the Adelaide CBD. It is a growing area with a mix of residential, commercial, and light industrial developments, benefiting from excellent connectivity to major transport routes, including Torrens Road and Port Road. This strategic positioning provides easy access to both the CBD and Port Adelaide, while its proximity to Arndale Shopping Centre enhances convenience for residents and businesses. The suburb has a diverse and evolving population, including a growing number of young families due to nearby residential developments like St Clair, as well as an aging demographic, both of which drive strong demand for medical and allied health services.<br><br>As an investment destination for healthcare assets, Pennington offers a range of compelling advantages. The suburb’s high exposure location, particularly at the intersection of Torrens Road and Addison Road, experiences approximately 40,000 passing vehicles daily, ensuring strong visibility for medical operators. Public transport connectivity is also well-established, providing ease of access for patients. Furthermore, the presence of Family Doctor Pty Ltd—the only South Australian centre operated by this national healthcare group—creates a competitive advantage, particularly with the integrated Guardian Pharmacy offering a complementary service. The facility’s additional upper-level space allows for future expansion, supporting long-term business growth.<br><br>Beyond location and demographics, South Australia’s broader economic and infrastructure landscape strengthens Pennington’s investment appeal. The state is experiencing a boom in healthcare and infrastructure spending, with a $17.9 billion government investment pipeline that includes major biomedical and hospital developments. The City of Charles Sturt supports commercial investment, fostering an environment where healthcare services can thrive. Medical assets, in particular, benefit from low vacancy rates and stable, long-term tenancy demand, ensuring income security for investors. The site’s zoning as a Local Activity Centre further reinforces its positioning as a key healthcare hub in the area.<br><br>With strong tenant security, a prime location, and ongoing demand for medical services, Pennington presents an ideal environment for a low-risk, high-stability healthcare investment. Its combination of demographic growth, strategic accessibility, and economic support makes it a standout choice for investors seeking secure and resilient commercial property opportunities.<br>
Additional Location Information FileFamily Doctor Pty Ltd <br><br>+Australian group of medical and dental practices with over 80 centres across Australia +Pennington represents their only centre in SA, with 43 of their total practices in Victoria, where they are headquartered <br><br>+Over 15 years of trade history around SA, originally founded by Dr Rodney Aziz in 2008. The focus of Family Doctor is to provide comprehensive patient care through their network of experienced General Practitioners ensuring high quality medical care and service to their patients and community <br><br>+Majority of Family Doctor Centres offer dental care, pathology, and allied health professionals. Pennington is also supported by Guardian Pharmacy, integrated into the centre<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://familydoctor.com.au/onecare/"><u>https://familydoctor.com.au/onecare/</u></a> <br>
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1-3 Addison Road, Pennington SA – 1275m2 - $468/m2 Confidential Sale – Northern Adelaide major medical centre ~$650/m2 1290 Grand Junction Road, Hope Valley - 436m2 - $596/m2 206-208 Portrush Road, Trinity Gardens - 874m2 – 532/m2 14 Anderson Walk, Smithfield - $496m2 - $540/m2 net
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• Net passing income of approximately $596,714 p.a. ($602,681 p.a. from 11th May), – after non-recoverable management fees estimated at $12,000 p.a. <br>• Net return of 6.10%, or after factoring in upfront stamp duty savings a healthy 6.44%<br>• The asset offers exceptional security via its non-discretionary nature, modern purpose built facility, growth location – and not least a lease term that extend to 2058 with options. <br>• 3% fixed annual increases<br>• Tenant covers all outgoings, including statutory rates, insurance, land tax, and maintenance<br>• Integrated Guardian Pharmacy at the front of the building, enhancing tenant stability<br>• Large site of approximately 2,493sqm with a gross lettable area of 1,275sqm<br>• 50 secure on-site car parks, supporting strong patient accessibility<br>• Additional first-floor space available for potential future expansion<br>• High-exposure location, fronting Torrens Road (56m) and Addison Road (90m), with 40,000 daily passing vehicles<br>• Long term upside potential by creating multiple tenancies, with a higher average rate/m2<br>• Zoned Local Activity Centre under the City of Charles Sturt Planning Scheme<br>• Located in a high-growth area, with a growing young-family population due to the St Clair subdivision<br>• Close proximity to key destinations – 12km to Adelaide CBD, 3.9km to Port Adelaide, and 3km to Arndale Shopping Centre<br>• South Australia’s strong economic fundamentals, with major infrastructure and healthcare sector investment<br>• Stamp duty abolishment represents considerable upfront savings on this property, approximately $538,330.<br>
