 Asset Class: | Medical |
 Price: | $ 2750000 |
 Net Yield: | 5.90 % |
Net Yield - including solar strategy: | % |
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This medical asset offers a combined landholding of approximately 1,937 sqm, strategically located in Launceston's most prominent commercial hub outside the CBD. Anchored by long standing essential service tenants, the property provides a stable and diversified income stream. Excitingly, the asset also comes with upside potential via rental adjustments to market (available in 2028), plus longer-term upside via the potential development of vacant land (4 Riseley Street is currently used for car parking). <br><br>The property features a single-storey medical and retail complex with a building area of approximately 730 sqm. The building includes 25 on-title car parks (4 Risely Street has a land area of approx 480sqm), enhancing tenant and customer convenience. Built in around 1990 (and not sold since), the building comes with low maintenance concrete block construction.<br><br>Net income totals approximately $158,969 per annum (after landlord outgoings of building insurance and management fees), offering a current net return of 5.78%. However, with rental increases due in March and May 2025, the net return is expected to increase to around 5.91% around settlement.<br><br>The property hosts three tenants, with excellent exposure to essential services. Slade Pharmacy is a national chain with a lease term extending to 2032. Kings Meadows Medical Centre is a long-established medical provider with a lease term until 2033. Salt Hair & Beauty is a respected local business operational at the site since 2018. The leases come with structured rent increases of CPI or 3%, and a very healthy WALE of approximately seven years. <br><br>Situated on the corner of Hobart Road and Riseley Street, the property benefits from significant exposure with over 30,000 vehicle movements daily. It is within 100 meters of Meadow Mews Plaza, Launceston's largest shopping center, and just 4 km from the CBD, making it an attractive location for tenants and customers alike. Kingmeadows is the most prominent commercial location outside of central Launceston. <br><br><b><u>Upside </u></b><br><br>The asset also comes with potential rental uplift, with the medical centre rent low ($176/m2), with market rents for medical around $230/m2 (conservative – see rental comparables and comments from local valuer). With a market review in 2028 (around 2.8 years time), an approximate uplift of $17,820 in today’s dollars – can be expected. Based on the cap rate of 5.8%, this rental adjustment represents a tidy capital increase of approx. $300,000, within 3 years of ownership.<br><br>The property offers future upside via vacant land at Risely Street (with an approximate current value of $500,000), which is currently used for excess car parking. Due to its Commercial zoning the lot could be developed to a number of commercial uses, or retained for car parking purposes.
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Kings Meadows is Launceston’s busiest commercial hub outside the CBD, making it a highly attractive location for commercial property investment. The area benefits from strong consumer demand, with a mix of national retailers, supermarkets, service providers, and hospitality venues ensuring steady foot traffic. Its strategic location, just a short distance from the CBD, provides excellent connectivity via major roads such as the Midland Highway and Hobart Road, enhancing accessibility for businesses and customers alike.<br><br>The suburb has a strong and growing residential population, supporting a stable customer base for retailers and service providers. With a diverse mix of tenants, including major supermarkets, banks, medical centers, and specialty stores, Kings Meadows offers economic stability and resilience. The area maintains low commercial vacancy rates and strong rental performance, making it easier for investors to secure quality tenants.<br><br>Compared to the Launceston CBD, Kings Meadows provides more affordable commercial property opportunities while still delivering strong rental yields. Ongoing infrastructure investment and development projects continue to support business growth, adding to the suburb’s long-term investment appeal. With limited vacancy and sustained demand, Kings Meadows presents a compelling opportunity for investors seeking stable, high-performing commercial assets.<br>
Additional Location Information File<u>Kings Meadows Medical Centre</u><br>Kings Meadows Medical Centre is a locally owned and operated general practice located in Kings Meadows, Launceston. <br><br>The Kings Meadows Medical Centre has been providing high quality health services to patients since 2006. The Doctors, Nurses and Administrative Support Team pride themselves on delivering outstanding customer service and health solutions. In 2019 they partnered with Newstead Medical, and now many of the staff work across both sites.<br><br><u>Slade Pharmacy</u><br>Slade Pharmacy was founded as a family business and now employs over 1,100 staff across over 70 locations nationally in the highly competitive industry. <br>Slade Pharmacy offers various health care solutions, and are a market leader in innovation and technology.<br><br><u>Salt Hair & Beauty</u><br>The property is also occupied by Salt Hair & Beauty - a successful local business. They have been operating in the property since 2018.<br>
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86 Hobart Road, Kingsmeadows– 730m2 - Slade Pharmacy – 331m2 - $303/m2 - Kings Meadows Medical – 330m2 - $177/m2 - Salt Hair & Beauty – 69m2 - $257/m2 - Suite 3, 182-192 Cimitiere Street, Launceston - $129m2 - $362.90/m2 - Unit 2, 75 - 77 Cameron Street, Launceston – 255m2 – $250/m2 - 2b, 67-75 Paterson Street, Launceston - $382m2 - $250/sqm - 99 Canning Street, Launceston - $140m2 - $282/m2 - 52 York Street, Launceston – 185m2 - $559/m2 Advice from a local valuer suggests an average range for medical centres of $275/m2 to $320/m2. This confirms significant potential upside for the medical centre of the subject asset.
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• Prime healthcare investment anchored by Slade Pharmacy and Kings Meadows Medical<br>• Secure, long-term income with a WALE of approximately 7 years<br>• Net income of $158,969 per annum, increasing to approx $162,511 around settlement, delivering an approx net return of 5.91%.<br>• 88% of income derived from essential services (medical and pharmacy)<br>• Three tenancies, including Salt Hair & Beauty, providing a diversified income stream<br>• Fixed rental and CPI increases with market reviews on option renewals<br>• Potential rental upside in 2028 on the Medical Centre of circa $17,619 (today’s dollars), representing an approximate capital upside of $300,000<br>• Significant approx. 1,937 m² landholding across two titles in a near-corner location<br>• Gross Building Area of approx 730 m², with modern medical and retail fit-outs<br>• 25 on-title car parks, adding future development potential (STCA)<br>• High-exposure site with over 30,000 vehicle movements per day<br>• Located within 100m of Launceston’s largest shopping centre, Meadow Mews Plaza<br>• Zoned General Business and Commercial, allowing for multiple future uses<br>• With a population around 100,000 people, Launceston is one of the larger regional cities in Australia.<br>
