 Asset Class: | Medical |
 Price: | $ 7290000 |
 Net Yield: | 6.40 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Prime Freehold Medical Centre with Strong Tenant & Exceptional 6.4%+ Net Yield</b><br><br>This prime freehold medical property offers an exceptional investment opportunity in the growing hub of Midland, Western Australia. Spanning 3,027sqm of land with a 1,005sqm purpose-built medical facility constructed in 2008, the property is tenanted by the established St Andrews Medical Group. With a net rent of $466,827.39 per annum plus outgoings and GST (including management), it delivers consistent and secure returns.<br><br>The lease, which commenced on 13 August 2018, runs until 12 August 2031, with a 5-year renewal option, ensuring long-term income stability. Strategically located in a high-demand area for healthcare services, this property combines immediate financial benefits with significant future growth potential, making it an outstanding addition to any investment portfolio.<br><br><b>What We Like About This Asset</b><br><br>- Medical Centre in central location with easy access and ample parking<br>- Freehold with low site coverage at 33% > land-bank with future development upside<br>- 100% of outgoings recoverable<br>- High patient demand and great online reviews<br>- Essential medical services (GP, Skin Cancer, Pathology)<br>- Tenant with long tracking-record<br>- Exceptional commencing net yield of 6.4% for a secure long-term lease until 2031 + 5 years<br>- Very attractive built-in capital growth at 4% fix increases<br>- Strong population growth > Midland catchment projected to grow by 44% by 2051 >further increasing demand for medical services<br>
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<b>The Medical Market</b><br><br>The medical market in Midland is a dynamic hub anchored by the Midland Health and Knowledge Precinct. This area includes significant institutions like St. John of God Public and Private Hospitals, the Curtin University Medical School, and various specialized health services. Key businesses include radiology providers, dental specialists, general practitioners, surgical centers, and pathology labs. Notable operators such as the Lions Eye Institute and Qscan Radiology are established here, alongside facilities catering to day surgeries and other medical research.<br><br>In terms of development density, Midland's medical sector benefits from modern, purpose-built infrastructure, such as the Sidings Railway Workshops, which houses medical offices and labs in a high-density format. These facilities emphasize shared spaces, hospital-grade designs, and state-of-the-art technology. The proximity of these developments to public transport hubs enhances accessibility, supporting a compact, well-integrated healthcare precinct.<br><br><b>Lifestyle & Population</b><br><br>Midland has experienced notable changes in its lifestyle and population trends over recent years. As a significant hub in the eastern metropolitan area of Perth, Midland offers a mix of urban convenience and suburban living. It has seen an increase in residential developments, with a focus on more diverse housing options, including apartments and townhouses, aligning with broader urbanization trends. <br><br>Population growth in Midland has been steady, driven by its affordable housing and improved infrastructure, including transportation links to central Perth. According to the 2021 Census, Midland had a higher proportion of medium-density housing compared to the broader Western Australian average, reflecting its role as a developing urban center.<br><br>Looking ahead, population projections for the region suggest continued growth, fueled by ongoing investment in local amenities and the area's appeal to younger families and professionals. <br><br>This blend of strategic location, evolving urban design, and population influx suggests Midland will continue to grow as a vibrant and accessible suburb in the coming years.<br>
Additional Location Information File<b>St Andrews Medical Group</b><br><br>St Andrews Medical Group is a well-established healthcare provider specialising in general practice and allied health services. They offer a comprehensive range of services, including family medicine, occupational health, chronic disease management, and preventative care. Their commitment to quality healthcare has earned them a strong reputation in Midland and surrounding areas, supported by a high patient demand and strong online reviews.<br><br>This property combines a solid lease profile with a trusted tenant, making it a secure and attractive investment opportunity.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://standrewsmedicalgroup.com.au/"><u>https://standrewsmedicalgroup.com.au/</u></a><br>
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Under the leases all outgoings are 100% recoverable, including management fees.
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Rental Comparable 9 Brockman Road, Midland – 1,005m2 - $464.5/m2 34-36 Minilya Parkway, Greenfields – 1,980m2 - $558/m2 24 Sundew Rise, Joondalup – 1,525m2 - $560/m2 First floor, 140 Aberthny Road, Belmont – 292m2 - $599/m2 Sales Comparable 9 Brockman Road, Midland – 1,005m2 - $7,711.44/m2 24 Sundew Rise, Joondalup – 1,525m2 - $8,984/m2 21-29 Havelock Street, West Perth – 4,856m2 - $10,317/m2
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<b>Purchase Price: </b>$7,290,000 <br><i>(this is an exclusive off-market. City of Subiaco have verbally confirmed that they would seriously consider the above offer. Final decision will need to run past a board.)</i><br><br><b>Current Net Rent:</b> $466,827.39pa + Outg + GST (incl mng)<br><b>Current Net Yield:</b> 6.4% (incl mng)<br><b>NLA / Land:</b> 1,005sqm / 3,027sqm (freehold)<br><b>Site Coverage:</b> approx. 33%<br><b>Purchase Rate per sqm: </b>$7,711.44/sqm (incl land)<br><b>Net Rent per sqm:</b> $465/sqm (fair market)<br><b>Outgoings / Rate per sqm: </b>$122,534pa (excl mng) / $122/sqm (excl mng)<br><b>100% Outgoings Recoverable:</b> Yes<br><b>Age of Asset: </b>2008<br><b>Any Incentives in the Lease: </b>None<br><b>Are Seller & Tenant Related: </b>No<br><b>Re-letting period:</b> Expect a re-letting period of approximately 3–5 months in the current market. Given the high demand for medical services, there may be some rotation of medical staff; however, the purpose-built medical clinic has remained fully occupied by the tenant since 2008 and is expected to continue performing strongly.<br><span style="color:rgb(51, 51, 51);"><b>Reason for Sale: </b></span><span style="color:rgb(51, 51, 51);">City of Subiaco is liquifying assets to invest elsewhere</span><br><b>Flood Zone:</b> No<br><b>Bushfire Zone:</b> No<br><b>Contamination: </b>No<br><br><b>Asset Composition: </b><br>• 3,027sqm Freehold<br>• 50m of street front<br>• Ample staff and customer parking on site<br>• Single Storey building<br>• 1,005sqm of NLA (33% Site Coverage)<br>• Large waiting area<br>• Multiple treatment rooms<br>• GP’s, Clinical Pathology, Skin Cancer Clinic<br><br><b>Infrastructure Level:</b> Tier 1<br><br><b>Key Highlights:</b><br>• Freehold in 3,027sqm of land<br>• Exceptional net yield for a medical asset at 6.4%<br>• 1,005sqm of building area<br>• Built in 2008 > depreciation benefits evident<br>• Current net rent $466,827.39pa + Outg + GST (incl mng)<br>• Lease rate @ $465/sqm (fair market rate with potential upside)<br>• 100% of outgoings recoverable, incl mng<br>• Annual increase at fixed 4%, market review at option (2031) + 5-year option<br>• High-Profile Tenant - St Andrews Medical Group
