 Asset Class: | Medical |
 Price: | $ 10700000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: |
Opportunity to purchase an A grade medical freehold at a significant discount to book value. The modern mental health outpatient centre was purpose-built to accommodate Peninsula Health’s healthcare services. Positioned on a corner 911 m² site, the property offers an outstanding location on the Nepean Highway, adjacent to the major shopping centre. The tenant offers excellent security, and the asset is available at a return reflective of great current buying conditions in Melbourne. <br><br>The asset comprises 1,577 m² of lettable area across three levels, designed to support high-quality medical and mental health services. Its well-maintained structure ensures a professional and functional environment.<br><br>The property generates a passing income of $642,578 and boasts a WALE of 4.3 years, underpinned by a stable, government-backed healthcare tenant. The return of 6% is well above where we would typically see an asset such as this, and reflective of excellent buying conditions in Melbourne currently. Further, considering comparable properties, there appears to be upside in the rent which can be unlocked in 2029. <br><br>Anchored by Peninsula Health, a leading public healthcare provider, ensuring long-term security and consistent rental income. The tenancy supports essential healthcare services for the local community. The Tarnbuk Centre is a dedicated mental health location, that combines Peninsula Health’s Mental Health, and the Alcohol and Other Drugs (AOD), teams together in the one facility, to improve continuity of care for consumers. The tenant has a lease to 2029, with a further 5 year option. The essential service nature of the tenant offers strong security. <br><br>Situated on Nepean Highway, a key arterial road, the property benefits from high visibility and accessibility. The suburb’s retail sector is anchored by Bayside Shopping Centre, which is located only meters away. Positioned within the growing Frankston and Mornington Peninsula region, the property serves a broad healthcare catchment.<br><br><i>It is understood that the book value for the asset is circa $11,800,000, representing a significant discount on this asset. Being a fund, offer prices will not be considered until a contract is presented. However, due to Rethink’s relationships have reason to believe an offer at this price may be accepted.</i><br>
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Frankston is a dynamic bayside suburb in Melbourne’s southeast, offering strong investment potential across multiple asset classes, particularly in commercial and residential property. Positioned approximately 41 km from Melbourne’s CBD, it serves as the gateway to the Mornington Peninsula, benefiting from both metropolitan and regional economic activity. With a growing population, the area continues to see rising demand for housing, retail, and services, supporting property values and rental growth.<br><br>The local economy is well-diversified, with strong contributions from healthcare, education, retail, and tourism. Frankston is home to Monash University’s Peninsula Campus and Frankston Hospital, ensuring consistent demand for both commercial and residential properties. The suburb’s retail sector is anchored by Bayside Shopping Centre, with a thriving small-business community adding to its commercial appeal. Infrastructure improvements and urban renewal projects are also driving gentrification, further enhancing investment potential.<br><br>Well-connected by public transport and major road networks, Frankston offers easy access to Melbourne and the Peninsula via the Frankston train line, Nepean Highway, and Peninsula Link. Its beachfront location, recreational facilities, and cultural attractions contribute to steady demand for short-term accommodation and hospitality ventures. With strong commercial demand near the transport hub, a growing industrial sector, and solid residential rental yields, Frankston presents a compelling opportunity for investors seeking both capital growth and income-producing assets.<br><br>In 2024, Canstar rated Frankston as one of the top Melbourne suburbs to invest. <br>
Additional Location Information FilePeninsula Health is the major public health service for Frankston and the Mornington Peninsula, providing world-class healthcare for you and your family. <br>We provide care for local residents from birth right through to end of life care, as well as a comprehensive range of sub-specialties including emergency medicine, intensive care, obstetrics and gynaecology, aged care, rehabilitation, oncology, mental health, and care in the home.<br><br>Providing world-class care to our community is at the heart of what we do. Our growing reputation for excellence in research and care propels us as leaders in the healthcare space.<br><br>With 13 main locations, including Frankston and Rosebud Hospital, we are the largest healthcare provider across Frankston and the Mornington Peninsula. <br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.peninsulahealth.org.au/about/about-us/"><u>https://www.peninsulahealth.org.au/about/about-us/</u></a> <br>
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411 Nepean Highway, Frankston – 1577m2 - $404/m2 265 Humphries Road, Frankston – 240m2 - $557/m2 42-44 Boneo Road, Rosebud – 655m2 - $389/m2 1233 Point Nepean Road, Rosebud – 240m2 - $425/m2 143 Frankston-Flinders Road, Frankston – 274m2 - $361/m2 Eastern VIC – 367m2 - $533/m2 Eastern VIC – 150m2 - $500/m2 Southern VIC – 110m2 - $410/m2
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• Outstanding freehold medical asset opportunity, featuring three-level mental health outpatient centre purpose-built for Peninsula Health.<br>• Anchored by Peninsula Health, ensuring a secure and stable tenancy, playing a critical role in the community. <br>• Net income of $642,578 with a WALE of 4.3 years.<br>• The strategic location of this 911m2 site is a major strength. Located on the Nepean Highway, offering high exposure and accessibility. Also, adjacent to the Bayside Shopping Centre, which Frankston’s retail economy is anchored by. The location offers excellent convenience and exposure. <br>• Vital healthcare facility serving Frankston and the Mornington Peninsula, a fast growing region.<br>• Neat and tidy from a building construction point of view, providing very little in ongoing maintenance.<br>• All outgoings are recovered from the tenant including management fees. <br>
