 Asset Class: | Medical |
 Price: | $ 1728000 |
 Net Yield: | 6.00 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
Opportunity to purchase an outstanding dual tenanted medical asset, with two long standing tenants. This dual frontage freehold asset sits only 500 meters from the heart of Launceston, and offers excellent income security. Both businesses have built exceptional goodwill at the site with their customer base, having occupied the site from 30+ years and 14+ years respectively. Medical businesses generally become less likely to relocate after such tenure, and will often sell their businesses to new operators upon retirement. <br><br>Braeside Dental are a renowned and very well-established business, serving Launceston for in excess of 30 years. Their lease expires in 2029, with a further 10 years’ worth of options. The Dental Prosthetics arm (separate lease) has existed at the site in excess of 14 years. Despite the fact their lease expires in May this year, it is understood that they intend to extend, and the offer made by Rethink is contingent on an extension being executed prior to going unconditional. <br><br>The dental services and dental prosthetics under the one roof create a seamless, efficient and patient focussed workflow. These two tenants have worked well together for over a decade and complement each other well. There has been a strong working relationship and decades of goodwill built in this premises – one of the best regarded dental offerings in the town.<br><br>The striking and modern looking building sits on the corner of Tamar and York Streets, perched just above the CBD. The building has a total lettable area of approximately 185m2, the original building benefiting from major extensions and refurbishments over the years. The building comes with the typical capital extensive fit outs normally associated with dental practices. The total land area of approx. 921m2, supports 8 on site car parks.<br><br>The asset returns approximately $103,422 per annum, with the tenants paying 100% of outgoings. The asset provides a net yield of 6%. The leases come with annual increases linked to CPI. <br><br>This is a well-located asset, linked to non-discretionary uses, with long standing tenants that have built up loyal customer bases. The asset will suit those seeking security of income and stability. <br><br>Note – the tenant has a first right of refusal built into their lease. Advice from the agent is that they are not likely to purchase the building. <br>
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• Situated at the head of the picturesque Tamar Valley, Launceston is the second largest city in Tasmania and is the major service centre for business, social and sporting activity in the Northern half of the State.<br><br>• The greater urban Launceston area had a population of approximately 110,000. It's population catchment increases to some 150,000 with surrounding towns and rural regions included.<br><br>• The city is widely recognised as a main gateway to Tasmania being just under an hours flight from Melbourne, through Launceston Airport passenger movements pre-covid reaching a record 1.39 million last financial year and expecting to increase to 1.9 million by 2028<br><br>• The city is home to a campus of the University of Tasmania including the world renowned Australian Maritime College and to other major businesses including Lion Nathan’s Boag’s Brewery. It is also the gateway to the Tamar Valley cool climate wine region which has become important to the region’s economy, now producing over 60% of the state's wines, as is the broader primary industries sector.<br><br>• Launceston and the northern region is diverse with eco tourism, world standard mountain bike trails, international standard golf courses and other attractions drawing record visitation numbers.<br><br>• Development in the city and region is at record levels boosted more recently with the largest ever single infrastructure investment in Launceston's history, the $250m relocation and redevelopment of the University's northern campus to the inner city Inveresk precinct now underway<br>
Additional Location Information FileOver the last 30 years, Dr Philip Leith and Dr Janice March have built a team of associate dentists, nurses and hygienists blending thoughtfulness and clinical ability to create a distinctive approach to dentistry. Fixing patients’ dental problems is a large part of what we do.<br><br>We are an independent dental surgery by choice. We are not affiliated with any third party corporate or health insurance company. Most of our services are covered by private health insurance rebates, and are claimable at our office on the day of your treatment.<br>We are registered to offer subsidised services to eligible patients via the Medicare Child Dental Benefits Scheme. We have HICAPS facilities to make your claiming easier, and welcome Department of Veteran Affairs card holders to our practice.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.braesidedental.com.au/"><b><u>https://www.braesidedental.com.au/</u></b></a><br>
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47 Brisbane Street, Launceston – 185m2 - $559/m2 Dental comparables can be difficult to obtain, but the agent (ex valuer) makes the following comments: There are limited leases of dental centres, particularly dental services as it is a relatively small market segment with a large proportion of these types of premises owner occupied or subject to lease arrangements between interrelated entities. The areas are particularly small (sub 200 sqm) which increases the rate/m². Note that the net rent includes 8 on-site car spaces, which would lease for $170 pcm each, which is approx. $16,000 pa. Once this is accounted for, the rate/m² drops. These are sub 200sqm tenancies (one below 50 sqm) – I’d expect they are at or below market.
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• Returning approximately $103,422 per annum plus outgoings and GST, delivering a 6% net yield.<br>• Long standing tenants, linked to the non-discretionary medical industry. A highly regarded and seamless dual dental service operation<br>• Capital intensive fit outs by tenants, combined with significant client goodwill, make the tenants long term and stable.<br>• Annual increases to both leases linked to CPI. <br>• Prominent CBD position, surrounded by other medical style tenants. <br>• The total land area of approx. 921m2, supports 8 on site car parks.<br>• The tenants pay 100% of outgoings, including management fees. <br>• Impressive approx. 185m2 premises with modern fit out. <br>• Ideal set and forget secure investment opportunity.<br>• With a population around 100,000 people, Launceston is one of the larger regional cities in Australia.<br>
