 Asset Class: | Medical |
 Price: | $ 773000 |
 Net Yield: | 7.50 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Prime Freehold Medical Investment in the Heart of Kalgoorlie returning 7.5% Net Yield</b><br><br>This is a rare freehold investment opportunity in the town center Kalgoorlie, WA, featuring a long-standing medical tenant with strong lease fundamentals. Positioned on a 506sqm landholding, the property includes a 335sqm building, originally constructed in 1910 and upgraded throughout the years to accommodate an extensive medical fitout.<br><br>The seller and tenant, Class 1 Orthodontics Pty Ltd, has operated from this location for 26 years. While the current lease runs until 2028, the sellers are committed to extending the lease term and options to a new expiry of 2030 + 5 years (2035) while also securing additional guarantees—demonstrating their long-term commitment to the site.<br><br>With a net income of $58,004 per annum plus outgoings and GST, this investment offers a high-yield, low-maintenance opportunity, delivering a solid 7.5% net return.<br><br><b>What We Like About This Asset</b><br><br>- Replacement value of building approx $1M ($3,000/sqm)<br>- Strong commencing net yield of 7.5%<br>- Strong lease terms - seller committed to new 5+5 lease incl guarantees and security deposit<br>- Low lease rate at $173/sqm<br>- Town center location with ample street and rear parking<br>- Extensive building upgrades to suit medical equipment<br>- Essential medical service - dental industry<br>- Double-sided street access<br>
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Is this property in a flood zone?
Is this lease a leaseback arrangement?
<b>The Medical Market</b><br><br>Kalgoorlie hosts a diverse medical sector encompassing various healthcare services and educational institutions. The city features general medical practices, such as I-Medical Australia, which offer bulk-billed consultations to address the local doctor shortage. Occupational health services are provided by organizations like Jobfit Health Group, delivering pre-employment medicals, drug and alcohol screening, and workplace vaccinations. Educational institutions, including Curtin University's Rural Health Campus, contribute to the medical landscape by offering training facilities and clinical skills development for medical and health science students. Additionally, the Australian College of Rural and Remote Medicine (ACRRM) has increased its presence, with registrars undertaking fellowship training in various specialties to enhance local healthcare delivery.<br><br><br><b>Lifestyle & Population</b><br><br>The population estimate for Kalgoorlie (2021) as of the 30th June 2023 is 38,908. Since the previous year, the population has grown by 0.23%. Population growth in Western Australia was 3.29%.<br><br>The city’s lifestyle is defined by its unique blend of heritage, industry, and community spirit. Home to a rich Indigenous heritage, Kalgoorlie maintains strong cultural ties, with Aboriginal and Torres Strait Islander people making up 7.3% of the population. Its historic architecture, museums, and community events reflect the city’s gold rush legacy, while modern amenities, restaurants, and social hubs cater to a diverse demographic. The presence of educational institutions and healthcare services ensures accessibility to key resources, enhancing its livability. <br>
Additional Location Information File<b>Class 1 Orthodontics</b><br><br>Class 1 Orthodontics is a leading orthodontic practice in Western Australia, dedicated to creating confident, healthy smiles for over 25 years. With seven convenient locations, including West Perth, Canning Vale, Rockingham, Baldivis, Kalgoorlie, West Busselton, and Cockburn, they offer a range of orthodontic treatments tailored to meet individual needs. <br><br>Specializing in Invisalign® clear aligners and traditional braces, their experienced team utilizes cutting-edge technology to provide personalized care for patients of all ages. Committed to the community, Class 1 Orthodontics offers free initial consultations and flexible payment plans to make orthodontic care accessible to everyone.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://www.class1ortho.com.au/"><u>https://www.class1ortho.com.au/</u></a><span></span><br>
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Under the leases all outgoings are 100% recoverable, including management fees and land tax.
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96 Egan Street, Kalgoorlie - 335m2 - $173/m2 Suite 6, 377 Hannan Street, Kalgoorlie - 219m2 - $240/m2 7/241 Hannan Street, Kalgoorlie - 84m2 - $275/m2 2 Boulder Road, Kalgoorlie - 113m2 - $265/m2 3/120 Egan Street, Kalgoorlie - 129m2 - $326/m2
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<b>Purchase Price:</b> $773,000* (negotiated)<br><br><b>Current Net Rent:</b> $58,004pa + Outg + GST (incl mng)<br><b>Current Net Yield:</b> 7.5% (incl mng)<br><b>NLA / Land:</b> 335sqm / 506sqm (Freehold)<br><b>Purchase Rate per sqm:</b> $2,307/sqm<br><b>Net Rent per sqm:</b> $173/sqm (excl mng)<br><b>100% Outgoings Recoverable:</b> Yes<br><span style="color:rgb(51, 51, 51);"><b>Outgoings excl mng:</b></span><span style="color:rgb(51, 51, 51);"> $11,988pa</span><br><b>Age of Asset:</b> Original building 1910, upgraded internally with extensive equipment to suit current medical use.<br><b>Any Incentives in the Lease:</b> None<br><b>Are Seller & Tenant Related:</b> Yes, this is a lease-back<br><b>Vacancy Status:</b> Tenanted – expect re-letting time of around 4-6 months in current market<br><b>Flood Zone:</b> No<br><b>Bushfire Zone:</b> No<br><b>Contamination:</b> No<br><b>Heritage</b>: Yes, registered in the Heritage Register ><a style="color:rgb(44, 123, 208);display:inline;" target="_blank" href="https://inherit.dplh.wa.gov.au/Public/Inventory/Details/5419e0d5-da34-403a-9193-66b135e60b29"><u> link</u></a><br><br><b>Asset Composition: </b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Freehold</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">506sqm land</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">335sqm of NLA</span></p></li></ul><br><b>Infrastructure Level:</b> Regional<br><br><b>Key Highlights:</b><br><ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Freehold with 506sqm of land</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">335sqm of building area</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Built in 1910 > depreciation benefits evident</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Purchase Price: $773,000</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Current Net Rent $58,004pa + Outg + GST (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Net Yield 7.5%</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Lease Expiry June-2030 + 5 years (2035) > condition of this offer (current lease expires in 2028)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Annual CPI increases and market at option</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">100% of outgoings paid by tenant (incl mng)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Tenant - Class 1 Orthodonticss Pty Ltd</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located 546km East of the Perth</span></p></li></ul><br><b>Agent Questions:</b><br><br><b>What is the NLA?</b> Alternatively, how has the lease rate been determined? I believe 335sqm* as per the lease<br><b>Have you got an outgoings breakdown (water, council, insurance)?</b> Will get it for you<br><b>Who does the fitout belong to (tenant/ owner)? </b><span style="font-weight:normal;">Owner and tenant are the same party, but I’d say owner if not stated in the lease.</span><br><b>Why is the owner selling?</b> Selling their entire commercial portfolio for personal reasons<br><b>I understand this is a lease-back?</b> Yes – they can sign a variation lease that will extend them to 2030 plus options<br><b>As this is a lease-back, it's in the buyer's interest to raise a security bond/ BG of 3-months net + VR's, plus DG (in an ideal world). Would the seller entertain this?</b> This is possible and can be sorted through solicitors/settlement agents<br><b>Are you aware of any significant defects that may come up in the building inspection?</b> Not that we are aware of
