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New State-of-the-art Victorian Hospital acquired for our client!

Located 11km west of the Melbourne CBD, this prime asset has exposure to 60,000 vehicles passing daily.

Part of a high-growth corridor in Melbourne’s west, the property offers an incredible opportunity in social infrastructure and medical investment. Previously sold on leaseback, it’s home to Melbourne’s leading gastroenterology and hepatology practice

The property has secure 10-year leases extending to 2052 and annual 3% rent increases. The tenant covers all building outgoings (except land tax) and offers personal guarantees. Located just 250 meters from Sunshine Marketplace and surrounded by top national retailers like Bunnings, Woolworths, Coles, ALDI, and more, this property boasts unbeatable connectivity and amenities. With zoning supporting future development up to 30 meters (8-9 storeys), the long-term potential is endless.

Purchase Details
Asking Price
8500000
Purchase Price
8250000
Deposit (assuming
65
% debt)
2887500
Stamp Duty
519994.5
Building Report*
2200
Solicitor Cost*
10000
Valuation*
6500
Other Fees* (Depreciation
report, bank fees)
177425
Total Cash Required
3603619.5
Purchase Price + Purchasing Cost
8966119.5
Net Annual Cash Flow Return
528544
Net Yield on Property
6.41
%
Net Yield Accounting for
Purchasing Costs
5.89
%
Cash-OnCash Returns
Deposit Needed =
% + Costs
3603619.5
Cost of Loan
(Assume
6.25
% pa on
65
% debt)
335156.25
Return of Equity
(Pure cash flow return)
5.37
%
Return of Equity with a
5% Capital Growth Rate:
16.81
%
Return of Equity with a
7% Capital Growth Rate:
21.39
%
Return of Equity
10% Capital Growth Rate:
28.26
%
*approximate number

Key Highlights

  • Net income of $526,295 annually, yielding 6.3%
  • 10-year leases with options to 2052– State-of-the-art day hospital
  • 1,000sqm with 21 on-site car parks
  • Excellent frontage to busy main road, 60,000 cars daily
  • Landholding of 2131sqm, zoning for up to 8-9 storey development
  • Annual 3% increases for consistent growth
  • Great depreciation benefits, reducing tax payable

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