 Asset Class: | Medical |
 Price: | $ 7650000 |
 Net Yield: | 6.46 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<p>An exceptional off-market opportunity presents itself to acquire a trophy medical investment property in the highly sought-after Sydney inner west suburb of Petersham. This substantial healthcare facility, operated by Royal Rehab Private Petersham, represents a secure income-generating asset with exceptional fundamentals.</p><p>Located just 8 kilometers from Sydney CBD, this 1,676m² site features a purpose-built rehabilitation hospital with 37 inpatient beds across 23 rooms. The property generates a net income of $494,890 per annum and offers a compelling 6.46% net yield.</p><p>The asset is underpinned by a 15-year lease to Royal Rehab, a market-leading healthcare provider with over 120 years of operational history. The lease includes 2 x 10-year options, providing exceptional income security until 2054. Annual rent reviews of 2.50% or CPI provide built-in income growth.</p>
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<p>Located in the thriving inner-west suburb of Petersham, the property benefits from excellent connectivity being just 8 kilometers from Sydney CBD. The site offers convenient access to public transport with Petersham train station within walking distance.</p><p>The surrounding area features a vibrant mix of residential and commercial properties, with growing gentrification driving local population growth and infrastructure development. The suburb provides excellent amenities including schools, parks, shopping facilities and a diverse dining scene.</p>
Additional Location Information File<p>Royal Rehab is a leading Australian healthcare provider specializing in rehabilitation and disability services since 1899. The tenant operates multiple facilities across Sydney and has built a strong reputation for clinical excellence in neurological rehabilitation, orthopedic rehabilitation and reconditioning programs.</p><p>The facility was previously known as MetroRehab Hospital before being acquired by Royal Rehab in 2019 as part of their expansion strategy. The tenant has invested significantly in upgrading the facility to create a seamless healthcare experience.</p>
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<p>The property offers exceptional financial fundamentals with:</p><ul><li>Purchase price: $7,650,000</li><li>Net income: $494,890 per annum</li><li>Net yield: 6.46%</li><li>15-year lease term with 2 x 10-year options</li><li>Fixed 2.50% or CPI annual rent increases</li><li>Net lease structure with tenant paying outgoings</li></ul><p><strong>Lease Overview:</strong></p><ul><li>Tenant: Royal Rehab Private Petersham</li><li>Net Lettable Area: 1,850 m2</li><li>Lease Term: 15 years (06-09-2019 to 05-09-2034)</li><li>Options: 2 x 10 years (potential to 2054)</li><li>Lease Type: Net Lease</li><li>Outgoings: 100% recovery excluding property management</li></ul><p><strong>Income Statement:</strong></p><ul><li>Gross Income: $515,510</li><li>Less Property Management (4%): $20,620</li><li>Net Income: $494,890</li></ul>
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<p>Address Date Net Yield NLA Rate $/m2 of NLA</p><p>40 Sapphire St Springfield QLD May-23 5.725% 773m2 $8396</p><p>G72-680 Grand BLVD Seaford Dec-22 5.06% 922m2 $6855</p><p>Meadows SA</p><p>48 Thomas Street Cardfiff NSW Aug-22 5.60% 1082m2 $7994</p><p></p>
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<ul><li>Prime inner-west Sydney location just 8km from CBD with excellent transport links</li><li>Purpose-built medical facility with 37 inpatient beds across 23 rooms</li><li>Strong tenant covenant from 120-year-old established healthcare provider</li><li>Significant lease term with 15-year initial term plus 2 x 10-year options</li><li>Attractive 6.46% net yield with fixed 2.50% or CPI annual increases</li><li>Large 1,676m² corner site with dual street access</li><li>Recently renovated and well-maintained facility</li><li>Zero vacancy risk with single tenant net lease structure</li><li>Healthcare sector backed by strong demographic trends</li><li>No flood risk or major maintenance requirements</li></ul>
