 Asset Class: | Medical |
 Price: | $ 3900000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Excellent Opportunity with Long Lease, Strong Annual Increases and Secure National Tenant, Commencing at 6% Net</b><br><br>This is an exceptional opportunity to acquire a fully leased Medical Centre on a prime 1,000sqm lot in a highly sought-after suburb, where median house prices stand at $1.35M and units at $700K.<br><br>Anchored by IPN Medical, a national operator with 150 centres across Australia, the property has benefited from a significant investment of approximately $1.5M in fit-out upgrades, a new lift installation, and car park resurfacing—demonstrating the tenant’s strong commitment to this location.<br><br>The lease is equally compelling, featuring a secure 7-year initial term expiring in 2030, with two additional 5-year options extending through to 2040. Fixed annual rent increases of 3.75% provide strong rental growth over time.<br><br>Adding to its long-term appeal, the site is zoned R-AC3, allowing for high-density development of up to six storeys—offering excellent future upside.<br><br>Medical centres with such a strong lease covenant, future development potential, and rental growth prospects are rare. With the current lease rate at just $325/sqm—considered below market for a property of this calibre—there is further potential for rental uplift, making this a truly compelling investment opportunity. Also, the 24 car bays are not currently charged for. Their market rate sits at approx $150/bay per month for undercover parking and $120/bay per month for open parking<br><br><b>What We Like About This Asset</b><br><br>- National medical tenant with 150 medical centres across the country<br>- Sticky tenant > spent approx $1.5M on fitout, new lift and carpark resurfacing<br>- WALE of 6 years +5+5 (2040)<br>- 1,000sqm Freehold Medical comprising 2x strata-lots (lower and upper floor) > can be leased or sold separately<br>- Sought-after suburb with median house price at $1.34M and units @ $700k<br>- Zoned R-AC3 > high-density development potential with maximum building height at 6-storeys<br>- Attractive built-in annual increases of 3.75% fix<br>- Strong commencing yield for this asset class at 6% net<br>- 24 car bays (not currently charged for); covered bay worth $150/bpm, open bay $120/bpm<br>- Lease rate at $325/sqm at lower end of fair market rate for this asset class<br>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<b>The Medical Market</b><br><br>Como hosts a variety of medical services, including general practitioners, dental clinics, and allied health providers. For instance, the Como Medical Clinic, located at 34 Talbot Ave, offers general medical services to the community. <br><br>In terms of development density, Como is experiencing significant growth, particularly within the Canning Bridge Activity Centre Plan (CBACP) area. This plan encourages mixed-use developments to enhance urban density and community amenities. Notable projects include the "Como Central" development, encompassing 18 properties over a 4,791 m² site, with zoning that permits structures up to 30 storeys. Additionally, a property at 102 Lockhart Street offers a 1,102 m² site zoned for residential buildings between 6 to 8 storeys. These developments indicate a trend towards higher-density, mixed-use projects in the area.<br><br><b>Lifestyle & Population</b><br><br>Como is a riverside suburb just 6 kilometers south of Perth’s CBD, offering a balanced lifestyle of tranquility and convenience. With tree-lined streets, parks like McDougall Park, and easy access to the Swan and Canning Rivers, residents enjoy outdoor activities such as picnicking, kayaking, and cycling. The Preston Street precinct serves as a local hub, featuring cafes, restaurants, and the historic Cygnet Cinema, adding cultural charm to the area. Families benefit from reputable schools like Penrhos College and Como Secondary College, while professionals enjoy seamless connectivity via the Canning Bridge Train Station and major roadways, making it a desirable location for a wide demographic.<br><br>Como has seen steady population growth in recent years, currently home to around 14,800 residents. Its proximity to Perth, strong community atmosphere, and access to amenities continue to attract families, young professionals, and retirees.<br>
Additional Location Information File<b>IPN Medical Centres</b><br><br>IPN Medical Centres is a premium operator of medical centres across Australia. At Independent Practitioner Network (IPN) Medical Centres, we work with doctors, nurses and practice staff at over 150 medical centres to provide patients with the Best of Health. <br><br>IPN provides over 7.6 million patient consultations a year, supported by a network of over 1,600 doctors. <br> <br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.ipn.com.au/"><u>https://www.ipn.com.au/</u></a>
Initial Term:
Security:
Security Info:
Under the leases all outgoings are 100% recoverable, including management fees.
Additional Financial Information FileInitial Term:
Security:
Security Info:
Subject Property: 129 Melville Parade, Como - 720m2 - $325m2 Comparable Properties: 9 Brockman Road, Midland - 1,005m2 - $465m2 155 South Terrace, Como - 167m2 - $329m2 2 (Lot 6), 9 The Avenue, Midland - 141m2 - $353m2 17 Wittenoom Street, East Perth - 165m2 - $364m2 696 Beaufort Street, Mount Lawley - 266m2 - $350m2 1/85 Old Perth Road, Bassendean - 132m2 - $386m2
Offer To Purchase:
$
Initial Deposit:
$
Due Diligence:
days
Finance:
days
Settlement:
days
<b>Purchase Price:</b> $3,900,000 (negotiated)<br><br><b>Current Net Rent:</b> $234,000pa + Outg + GST (incl mng) <br><b>Exclusive Car Bays (Ratio):</b> 24 car bays (1 bay in 30sqm)<br><b>Current Net Yield:</b> 6% (incl mng)<br><b>NLA / Land:</b> 720sqm / 1,012sqm (freehold, comprising 2x strata - lower and upper floor)<br><b>Purchase Rate per sqm:</b> $5,416.66/sqm<br><b>Net Rent per sqm:</b> $325/sqm (incl mng)<br><b>100% Outgoings Recoverable:</b> Yes<br><b>Outgoings (per sqm):</b> $74,000pa (excl mng) ($103/sqm)<br><b>Age of Asset:</b> approx. 26 years (1998)<br><b>Any Incentives in the Lease:</b> None<br><b>Are Seller & Tenant Related:</b> No<br><b>Re-letting Period:</b> expect 4-6 months due to specialty fitout<br><b>Flood Zone:</b> Yes, 20% of the lot is on the flood map register but it doesn't affect the building as ground level is allocated to car bays<br><b>Bushfire Zone:</b> No<br><b>Contamination:</b> No<br><br><b>Asset Composition: </b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">2 strata units on freehold block</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">1,012sqm land</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">720sqm of NLA</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Two- level building with under croft parking at street level grade</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">extensive fitout with consulting room partitioning and plumbing</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">new lift</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">new resurfacing to carpark</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">A pedestrian access ramp leads to the main entry from street level</span></p></li></ul><br><b>Infrastructure Level: </b>Tier 1<br><br><b>Key Highlights:</b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">2x strata units on 1,012sqm of land</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">720sqm of lettable building area</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Built in 1998, significant upgrades in 2023 > depreciation benefits evident</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Purchase Price $3,900,000 (negotiated)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Current net rent $234,000pa + Outg + GST (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Net Yield 6%</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Lease Expiry Dec-2030 + 2x 5-years (2040)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Fixed Annual increase at 3.75%, market review at option</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">100% of outgoings paid by tenant (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenant - IPN Medical Centres Pty Ltd & treecity Pty Ltd</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located 5km South of the Perth CBD</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">R-AC3 Zoning - high density up to 6-storeys</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">significant redevelopment to high-density in the area</span></p></li></ul><br><b>Agent Questions:</b><br><br><b>How old is the building?</b> 1998<br><b>Who does the fitout belong to?</b> Tenant<br><b>Why is the owner selling?</b> The owner is 80 and is looking to gain access to the equity in the property.<br><b>Is the tenant related to the owner in any way?</b> No the owner is local and the tenant is a national medical covenant with more than 150 centre Australia wide. <a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.ipn.com.au/who-we-are/our-medical-centres/"><u>https://www.ipn.com.au/who-we-are/our-medical-centres/</u></a><br><b>Are mng and taxes recoverable?</b> Yes<br><b>There’s no security deposit or BG in place currently. Can we raise 3-months security from the tenant? </b><br>Not available. The covenant is to a national medical services provider with more than 150 medical centres across the country. They won’t provide a bank guarantee. In the event that the current tenant or a Related Body Corporate isn’t in occupation of the building, a 6 month Bank Guarantee will be required from the IPN Medical Centres Pty Ltd.
