 Asset Class: | Medical |
 Price: | $ 1353000 |
 Net Yield: | 5.70 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | Off Market |
<b>Ground Floor Medical Suite in Prime Location with 30%+ Rental Upside</b><br><br>This outstanding leased investment is situated in the highly sought-after suburb of Subiaco, just 200m from the train station. Boasting excellent street frontage, the property offers security with a long lease and a well-established tenant.<br>Metropolitan Anaesthesia Pty Ltd has occupied the premises since its construction in 2006, demonstrating a strong and reliable tenancy. The property is currently leased at an attractive rate of just $214/sqm, while comparable properties in the area command rents of $275–$300/sqm or more. Additionally, the four car bays—valued at $250 per bay per month—are not currently being charged for, presenting further potential upside.<br>The lease extends until 30 June 2031, with a five-year option to 2036 and fixed annual increases of 3.5%, ensuring steady rental growth. Importantly, the tenant covers 100% of outgoings, including management fees, which are capped at $4,000 per annum.<br>While the property is currently under-rented by approximately $34,000 per annum based on today’s market rates, the majority of this potential uplift will only be realised at the market review in 2031.<br>Despite this, the property remains an exceptional investment opportunity, offering long-term stability and strong future growth potential.<br><br><br><b>What We Like About This Asset</b><br><br>- sought-after blue-chip location<br>- Purchase Rate only $3,758/sqm (comparable sales around $6,000/sqm)<br>- current lease rate at $214/sqm (comparable rates between $275-$300/sqm)<br>- 4 exclusive car bays, not currently charged for ($250/bpm x 4 = $12,000pa rental upside)<br>- 100% outgoings recoverable (management capped at $4k pa)<br>- strong built-in growth at 3.5% annual increases<br>
How old is the asset?
Vendor's reason for selling?
Days property been on market?
Is this property strata titled?
Are the seller and tenant related parties?
How long has the current tenant been on site?
How long has the tenant been in business?
Is this property in a flood zone?
Is this lease a leaseback arrangement?
<b>The Medical and Office Market</b><br><br>Subiaco is a well-established commercial hub known for its strong presence in the medical, professional services, and corporate office sectors. The suburb hosts a variety of medical consulting rooms, specialist clinics, allied health services, and private hospitals, making it a key location for healthcare professionals. Additionally, law firms, accounting practices, real estate agencies, and technology companies contribute to the area's diverse office market. The demand for office space is driven by Subiaco’s proximity to Perth CBD, strong transport links, and a well-developed business environment.<br><br>Subiaco features a balanced mix of modern commercial buildings, refurbished heritage offices, and mixed-use developments. The area has seen medium to high-density commercial growth, with an increasing number of medical precincts, office buildings, and retail-integrated developments. Recent zoning changes have encouraged higher-density mixed-use projects, leading to more contemporary office spaces and medical hubs, particularly around key transport corridors.<br><br><br><b>Lifestyle & Population</b><br><br>Subiaco has experienced steady population growth over the past decade, driven by its desirability as a residential and commercial hub. The suburb’s population increased from 8,015 in 2011 to 9,188 in 2016, reflecting a 14.6% rise during that period. More recent estimates suggest the population reached 17,902 in 2021 and is projected to grow by 51.18% between 2021 and 2046.<br><br>Subiaco offers a dynamic lifestyle, combining urban conveniences with a strong community atmosphere. The suburb is known for its vibrant café culture, boutique shopping, and diverse dining options, making it a popular destination for both residents and visitors. Green spaces like Kings Park and Lake Jualbup provide recreational opportunities, while regular markets and cultural events enhance the suburb’s appeal. Excellent public transport connections and proximity to Perth’s CBD make it a highly accessible and well-connected area.<br>
Additional Location Information File<b>Metropolitan Anaesthesia</b><br><br>Metropolitan Anaesthesia is a leading provider of anaesthesia and pain management services across Perth, Western Australia. Their team of specialist anaesthetists collaborates with surgeons and medical professionals to deliver safe and effective anaesthetic care for various surgical procedures. They also offer comprehensive pain management solutions, ensuring optimal patient comfort and recovery.<br><br><a style="color:rgb(51, 51, 51);display:inline;" target="_blank" href="https://metroanaes.com.au/"><u>https://metroanaes.com.au/</u></a><br>
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Under the leases all outgoings are 100% recoverable, including management fees and land tax.<br><br>Council Rates: $11,283.00<br>Strata Rates: $28,238.20<br>Water Rates: $2,400<br>Land Tax: $379.50<br><b>Total: $42,300.70</b>
Additional Financial Information FileInitial Term:
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Security Info:
6/1 Station Street, Subiaco - 360m2 - $214/m2 + 4 bays 340 Hay Street, Subiaco - 252m3 - $300/m2 (mixed use) + 5 bays GF, 40 Subiaco Square, Subiaco - 389m2 - $350/m2 (mixed use) + common car bays 392 Rokeby Road, Subiaco - 167m2 - $299/m2 (medical/consulting) + 6 bays GF, 15 Railway Road, Subiaco - 185m2 - $355/m2 (medical/consulting) + 3 bays 696 Beaufort Street, Mount Lawley - 266m2 - $350/m2 (medical/consulting) + 13 bays
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<b>Purchase Price:</b> $1,353,000 (negotiated)<br><br><b>Initial Asking Price:</b> $1,353,000<br><b>Current Net Rent: </b>$77,127pa + Outg + GST (incl mng) <br><b>Exclusive Car Bays (Ratio):</b> 4 car bays included in the rent<br><b>Current Net Yield:</b> 5.7% (incl mng)<br><b>NLA / Land: </b>360sqm (strata)<br><b>Purchase Rate per sqm:</b> $3,758/sqm<br><b>Net Rent per sqm: </b>$214/sqm (excl mng)<br><b>100% Outgoings Recoverable: </b>Yes, incl mng capped at $4k<br><b>Outgoings (per sqm):</b> $42,301pa excl mng ($118/sqm)<br><b>Age of Asset:</b> approx. 2006<br><b>Any Incentives in the Lease: </b>None<br><b>Are Seller & Tenant Related:</b> This was purchased under a partnership, some owners now retiring.<br><b>Re-letting Period: </b>2-4 months in the current market (high tenant appeal due to location, proximity to train & street frontage)<br><b>Flood Zone: </b>No<br><b>Bushfire Zone: </b>No<br><b>Contamination: </b>No<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;">Ground Floor Strata</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;">360sqm of NLA</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;">4 exclusive undercover car bays</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;">Front reception/ waiting</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;">Partitioned offices</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;">Consulting rooms</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;">Fully self-contained - Includes kitchen/lunchroom, male and female toilets, shower</span></p></li></ul><br><b>Infrastructure Level: </b>Tier 1<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;">Ground Floor Strata</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;">360sqm 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 2006 > 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 $1,353,000</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 $77,127pa + Outg + GST (incl mng capped at $4k)</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 5.7%</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 30 Jun-2031 + 5-years (2036)</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;">Fixed annual increase at 3.5%, review 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 capped at $4k pa)</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;">Building Purchase Rate only $3,758/sqm</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 - Metropolitan Anaesthesia Pty Ltd</span></p></li></ul><br><b>Agent Questions:</b><br><br><b>Who does the fitout belong to?</b> The fit out is partly owned by tenant and partly Landlord. The initial fitout was paid for by the Landlord but further fit out expenses has been paid for by the tenant over the years. The portion of plant and equipment owned by the Landlord has been depreciated to $24,157.00 in the 2024 financial year.<br><b>How long has the tenant been operating in this property?</b> Since 2006 when they purchased the suite.<br><b>Why is the owner selling? </b>The original purchase was to some of the anaesthetists that owned the property and business. As always with partnerships there are now ones that are retiring and want to get out of the property and business with the younger partners still in the business. <br><b>Is the tenant related to the owner in any way?</b> Some of the owners yes but they will be out of the property and business.<br><b>Is there any security / guarantor in place?</b> No, the sellers will not accept it as a condition of the purchase but a security bond can be dealt with after exchange of contract.<br><b>Are you aware of any significant defects that may come up in the building inspection?</b> There were some issues with water leaking from the balcony above but I believe they have been identified and fixed. The strata info and building inspection should pick this up.<br>
