 Asset Class: | Medical |
 Price: | $ 5100000 |
 Net Yield: | 5.85 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
Presenting an exceptional investment opportunity in the thriving healthcare and hospital precinct of Hervey Bay - the GenesisCare Radiation Oncology facility at 15 Medical Place, Urraween. This premium medical asset offers a solid return with a national tenant on a secure long-term lease.<br><br>Positioned strategically within a dedicated healthcare hub, this 600sqm building sits on a generous 2,254sqm land area, leased to Genesis Care - a well-established, national, healthcare provider owned by Oaktree Capital, which is partly owned by Brookfield AM, with 50 locations nationally and 30,000 patients annually.<br><br>The property generates a robust net annual income of $298,684 plus outgoings and GST, structured as a net lease where the tenant pays all outgoings. This represents $498/sqm which is considered very low compared to other similar medical facility rents at $600/sqm+.<br><br>With approximately 4.75 years remaining on the current lease term (expiring 27 February 2029) and options for 10 x 10 years, this investment offers excellent security and potential for long-term returns.<br>The property is being divested as part of a liquidity event from one of Barwon Property Fund's (a large Australian property fund) smaller health fund occurring in September, creating a time-sensitive opportunity for astute investors to acquire this premium healthcare asset. With a price of $5,100,000 (subject to further negotiation) reflecting a strong 5.85% yield, this represents a very attractive investment into the resilient medical property sector.<br><br>*indicative photo only
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Hervey Bay is a thriving coastal city located in Queensland's Fraser Coast region, approximately 290km north of Brisbane. The area has experienced <b>consistent population growth</b> and development, particularly in the healthcare sector.<br><br>The property is ideally situated in the <b>dedicated healthcare precinct</b> of Hervey Bay, anchored by St Stephen's Private Hospital which is operated and owned by UnitingCare. This healthcare hub includes Public Cancer Care Service, Oral Healthcare Service, an Estia Health Aged Care Facility (145 beds), The Bay Surgery/Medical Centre, Primary Care Medical Centre, Dental, Orthopaedics and various other complementary healthcare services.<br><br>This strategic location ensures steady patient flow and creates natural synergies between the various medical providers, enhancing the long-term stability and value of the investment.<br><br>Hervey Bay is the 9th largest city in QLD and one of the fastest growing cities in Australia.<br>· 300km* north of Brisbane<br>· 200km* north of Sunshine Coast<br>· 34km* north of Maryborough<br>· 100km* south of Bundaberg<br><br>The Fraser Coast is a twin-town region comprising the cities of Hervey Bay and Maryborough, and home to approximately 120,000 people. The region has seen some of the highest levels of net migration in Australia in recent years, ranking 3rd of all cities in Australia in the 2022 “Regional Movers Index” report, only behind the Sunshine Coast and Geelong.<br><br>Fraser Coast Regional Council population forecast for 2024 is 120,000*, and is forecast to grow to 150,000* by 2046<br><br>Dubbed the commercial heartland of the Fraser Coast, Hervey Bay has a rapidly evolving market set to undergo a 20-year revitalisation under the 2021-2041 Master Plan.<br><br>Hervey Bay itself lies 3 hours north of Brisbane and its golden beaches stretch 14km along the Bay’s foreshore.<br><br>The region has a solidified commercial hub with trade catchment of over 120,000 people, and beacons as the jump-off point for 4WD adventurers heading to the World Heritage-listed site Fraser Island (Kagari).<br><br>Hervey Bay’s diverse economy coupled with its coastal location is what makes the region an investment “hot spot”.
Additional Location Information FileThe property is leased to <b>Genesis Cancer Care QLD Pty Ltd</b>, a subsidiary of Genesis Care, which is one of Australia's leading providers of integrated cancer care services.<br>Genesis Care specializes in radiation oncology services and has established itself as a key provider within the healthcare sector. Their substantial corporate backing provides additional tenant security, while their integration within the broader healthcare precinct creates natural business synergies and patient referral pathways.<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;">Founded in Brisbane</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">50 facilities across Australia</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Australian business is now separate to US, Spain and UK operations</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Owned by Oaktree Capital, which is partly owned by Brookfield AM</span></p></li></ul><br><p style=""><a style="color:rgb(51, 51, 51);display:inline;font-weight:normal;font-style:normal;" target="_blank" href="https://www.genesiscare.com/au/about-genesiscare"><u>https://www.genesiscare.com/au/about-genesiscare</u></a><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"></span></p>
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This investment presents compelling financial metrics:<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-style:normal;"><b>Purchase Price:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> $5,100,000 (subject to further negotiation-original asking price was $5,272,500 or 5.5% on 2024 net income)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Current Rent:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> $298,684 plus outgoings and GST ($498/sqm)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Net Yield:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> 5.85%</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Lease Structure:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> Net lease (land tax, management, rates, insurance, and repairs, etc are paid for by the tenant, not including CAPEX)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Rent Reviews:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> CPI annually with market review at option periods</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-style:normal;"><b>Security:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> No bank guarantee; lease Guarantor is head entity Genesis Care Pty Ltd</span></p></li></ul>With approximately 4 years and 9 months remaining on the current lease term and substantial options for extension (10 x 10 years), this property offers excellent security of income and potential for long-term capital growth.
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Subject Property: 15 Medical Place, Hervey Bay QLD (Radiology) - 600sqm - $498/sqm net Wesley Specialist Imaging (Auchenflower) QLD (Radiology) - 320sqm - $750/sqm net 5/166 Boat Harbour Drive, Hervey Bay QLD (Medical Centre) - 263sqm - $580/sqm net 8 and 10 Mapleton Road, Nambour (Genesis Care) - 1,392sqm - $550/sqm net 332 Old Cleveland Road, Coorparoo QLD (Radiology) - 694sqm - $533/sqm net
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<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;">Premium medical asset in established healthcare and hospital precinct of Hervey Bay QLD</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;">Modern build (estimated to be completed in 2019)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Secure national tenant - Genesis Care (50 locations around Australia)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Strong net income of $298,684 plus outgoings and GST - at $498/sqm net, considered below market, providing future valuation uplift potential</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Long-term lease with 4.75 years remaining plus 10 * 10-year options with CPI reviews annually and market rent reviews at option</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Substantial land area of 2,254sqm with 600sqm building</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located in dedicated healthcare hub surrounded by complementary services</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenant backed by institutional ownership (Oaktree Capital/Brookfield AM)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Regular rental reviews (CPI annually with market review at options)</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Limited supply of purpose-built medical facilities in growing regional area</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Significant fitout investment from tenant (radiology equipment and other requirements) underpinning the tenant demand for the centre</span></p></li><li style="list-style-image:none;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Timebound opportunity due to fund's liquidity event in September</span></p></li></ul>
