 Asset Class: | Medical |
 Price: | $ 1667000 |
 Net Yield: | 5.70 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
This property presents an incredibly rare investment opportunity, offering a high-quality medical asset at an attractive price point, with a <b>solid net yield of 5.7%</b>—a rarity for a medical property in NSW. The 180 sqm facility is fully equipped with three consultation rooms, theatre rooms, x-ray and sterilisation spaces, and dedicated parking, making it an ideal setup for medical professionals. Medical properties of this calibre, especially at this price, are hard to come by in the current market, particularly in a <b>high-demand NSW location</b> like Shellharbour, where significant infrastructure and population growth are on the horizon. With a <b>secure lease</b> to Illawarra Animal Hospital Pty Ltd (backed by <b>VetPartners Pty Ltd</b>, a subsidiary of <b>EQT</b>), a global investment firm, the stability of the tenant further enhances the appeal. This property combines strong financial returns, long-term stability, and an excellent location, making it a truly rare find for investors seeking a prime medical asset in a rapidly expanding region.
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<b>Yallah, NSW</b> is a small but strategically located suburb in the <b>Illawarra region</b>, just south of <b>Wollongong</b>. Positioned along the <b>Princes Highway</b> and <b>M1 Motorway</b>, it offers excellent connectivity to both <b>Sydney and the South Coast</b>, making it a desirable location for commercial and industrial activity.<br><br>Traditionally a <b>semi-rural area</b>, Yallah has seen increasing growth due to its proximity to <b>Albion Park, Dapto, and Wollongong’s expanding urban corridor</b>. With <b>light industrial developments, agricultural land, and some residential pockets</b>, the suburb is evolving into a key hub for logistics and business operations. The <b>Illawarra’s low commercial vacancy rates</b> and ongoing infrastructure projects, such as the <b>Albion Park Rail Bypass</b>, further enhance its investment appeal.<br><br>As part of <b>New South Wales’ growing South Coast region</b>, Yallah benefits from the broader economic strength of <b>Wollongong</b>, a city known for its <b>diverse economy, strong employment market, and ongoing development projects</b>. This makes Yallah an <b>emerging opportunity</b> for investors seeking well-connected, high-growth industrial and commercial assets.<br><br><br>Wollongong Ecomony:<br><br>Wollongong, a vibrant city in New South Wales, boasts a diverse and robust economy. The city's <b>Gross Regional Product (GRP)</b> is approximately <b>$15.74 billion</b>, accounting for <b>2.14% of New South Wales' Gross State Product (GSP)</b>. The leading industries contributing to Wollongong's economic output are:<br><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>Manufacturing:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> $4.95 billion (16.7%)</span></p></li></ul><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>Construction:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> $3.755 billion (12.7%)</span></p></li></ul><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>Mining:</b></span><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;"> $2.873 billion (9.7%)</span></p></li></ul><br>Collectively, these sectors represent <b>39.1%</b> of the city's total industrial output. <br><br>Wollongong's economy has evolved significantly, transitioning from traditional industries to a more diversified economic base. The city has set an ambitious target to create <b>10,500 new jobs over the next decade</b>, nearly doubling the growth achieved in the previous ten years. The <b>University of Wollongong (UOW)</b> plays a pivotal role in this transformation. In 2018, UOW's activities contributed <b>$1.4 billion</b> to the Gross Domestic Product (GDP), generating <b>$2.5 billion</b> in gross output annually. This diversification and strategic focus on emerging sectors underscore Wollongong's growing economic strength and its commitment to sustainable development.
Additional Location Information File<b><u>Illwarra Animal Hospital</u></b><br><br>Illawarra Animal Hospital, established in 2015, <b>expanded its services in 2018</b> by establishing a second location in Figtree, which offers general veterinary care and specialized rehabilitation services under the brand name Illawarra Animal Rehabilitation. <br><br><b>Illawarra Animal Hospital</b> is a leading veterinary service provider in the Illawarra region, offering <b>comprehensive medical, surgical, and rehabilitation care</b> for pets. With clinics in <b>Yallah and Figtree</b>, they are dedicated to providing high-quality, compassionate veterinary services.<br><br>Their offerings include <b>general health check-ups, vaccinations, dental care, orthopaedic and soft tissue surgeries, hydrotherapy, and rehabilitation</b>. They also run a <b>puppy preschool program</b>, focusing on early training and socialization. The hospital is known for its <b>state-of-the-art facilities</b> and experienced veterinary team, ensuring pets receive the best possible care.<br><br>Illawarra Animal Hospital is highly regarded for its <b>client-focused approach</b>, emphasizing pet well-being, owner education, and cutting-edge veterinary treatments. Their strong presence in the <b>Wollongong and greater Illawarra region</b> makes them a trusted choice for pet owners seeking professional and compassionate animal care.<br><br><br><b>Illawarra Animal Hospital Pty Ltd</b><br><br><b>Overview:</b> Established in 2015 by Dr. Paul Partland, Illawarra Animal Hospital provides high-quality veterinary services to the Illawarra region, with locations in Yallah and Figtree. <br><br><b>Services:</b> The hospital offers comprehensive care, including general health check-ups, vaccinations, dental care, surgeries, and rehabilitation services.<br><br><b>Ownership:</b> The hospital is part of VetPartners Pty Ltd, a leading veterinary services provider in Australia and New Zealand, operating 267 clinics and specialty hospitals. <br><br><br><b>VetPartners Pty Ltd</b><br><b>Overview:</b> VetPartners manages a network of community-based veterinary practices, emphasizing local autonomy while providing centralized support.<br><br><b>Scale:</b> The network includes over 1,300 veterinarians and 3,000 support staff, handling more than 3.2 million pet visits annually. <br><br><b>EQT</b><br><b>Overview:</b> EQT is a global investment organization with a strong track record in various sectors, including healthcare.<br><br><b>Acquisition of VetPartners:</b> In October 2023, EQT agreed to acquire VetPartners, valuing the company at approximately A$1.4 billion. This acquisition underscores EQT's commitment to expanding its presence in the veterinary and animal health services sector. <br><br>This ownership structure, with Illawarra Animal Hospital under VetPartners and backed by EQT, ensures a stable and well-supported environment for delivering exceptional veterinary care.
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Subject Property: 3/20-24 Princes Highway, Yallah - 180sqm - $527/sqm 5/22 College Avenue Shellharbour City - 118sqm - $500 - 550/sqm 2/64 Terry Street, Albion Park - 65sqm - $462/sqm 2/243 Princes Highway, Albion Park Rail - 80sqm - $468/sqm
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<span style="color:rgb(0, 0, 0);">Negotiated Price: $1,667,000</span><br><span style="color:rgb(0, 0, 0);">Net Yield: 5.7%</span><br><br><span style="color:rgb(0, 0, 0);">Property: </span><br><br><span style="color:rgb(0, 0, 0);">NLA - 180 sqm</span><br><br><span style="color:rgb(0, 0, 0);">Foyer/reception with waiting area</span><br><br><span style="color:rgb(0, 0, 0);">Three fully equipped consultation rooms</span><br><br><span style="color:rgb(0, 0, 0);">Theatre rooms</span><br><br><span style="color:rgb(0, 0, 0);">Dedicated x-ray and sterilisation spaces</span><br><br><span style="color:rgb(0, 0, 0);">Dedicated on-site parking for clients</span><br><br><span style="color:rgb(0, 0, 0);">Zoned E4 General Industrial</span><br><br><br><span style="color:rgb(0, 0, 0);">Location:</span><br><br><span style="color:rgb(0, 0, 0);">Excellent exposure and visibility to passing traffic on the Princes Highway and M1 Princes Motorway</span><br><b><br>Current Population:</b> Shellharbour has a population of <b>84,277</b> people as of the 2025 Shellharbour City Council forecast. (Wollongong 2025 - 223,000 people)<br><b><br>Projected Growth:</b> The population is expected to grow, reaching over <b>100,000</b> by 2046, representing a <b>31.67% increase</b>. (Wollongong 2046 - 291,797 people)<br><br>The <b>Illawarra Regional Airport</b> upgrade, with a <b>$15.97 million</b> investment, will expand infrastructure, enhancing tourism and trade in the region.<br><br>The <b>Shell Cove Marina</b> development is a key infrastructure project valued at <b>$1.6 billion</b>, aimed at creating a major waterfront precinct with residential, commercial, and leisure facilities.<br><b><br>Residential Development:</b> The <b>West Dapto</b> area is planned to accommodate <b>19,500 new homes</b>, aimed at meeting the growing demand for housing driven by population growth.<br><br><br>With a growing population and significant ongoing and planned developments, Shellharbour is poised for continued economic strength and expansion in the coming decades.<br><br><br><span style="color:rgb(0, 0, 0);">Tenant:</span><br><br><span style="color:rgb(0, 0, 0);">Fully tenanted to Illawarra Animal Hospital Pty Ltd (owned by VetPartners Pty Ltd, a subsidiary of gloabl investment organisation EQT)</span><br><br><b>Strong Veterinary Network:</b> Illawarra Animal Hospital is a well-established veterinary provider in the Illawarra region, offering high-quality medical, surgical, and rehabilitation services across its Yallah and Figtree locations.<br><br><br><b>Corporate Backing:</b> The hospital is owned by <b>VetPartners Pty Ltd</b>, a major veterinary group managing over 267 clinics across Australia and New Zealand, ensuring strong operational support and financial stability.<br><br><b><br>Global Investment Strength:</b> VetPartners is a subsidiary of <b>EQT</b>, a global investment firm with significant resources, reinforcing the hospital’s long-term viability and making it a secure tenant in any investment property.<br><br><br><span style="color:rgb(0, 0, 0);">Secure five-year lease with three 5 five-year options</span><br><br><br>
