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Investment Type: | Medical |
Price: | $ 2700000 |
Net Yield: | 6 % |
Net Yield - including solar strategy: | % |
Property Market Status: | EOI |
This property provides excellent exposure to the non-discretionary medical asset class, leased to Australia’s largest Allied Health Group, on a long 10 year lease. The lease comes with a futher 2 x 5 year options, extending out to 2040. The modern 342 m2 building comes with an up-to-date medical fit-out. It is situated in a high demand location of Traralgon, a progressive Regional City of Victoria. With dual frontage of around 14m, and private car parking, the site is likely to remain attractive to tenants for the long term. The asset comes with a net income of $162,868, providing a net return of 6%. The lease comes with landlord friendly 3.5% annual increases. Take advantage of potential 50% stamp duty saving currently applicable to assets in regional Victoria. Based on a purchase price of $2,700,000, this concession translates to a substantial $77,750 saving. Medical assets are sought after due to their defensive characteristics, and with long leases such as this, typically come with net yields well below 6%. The market timing for purchasing this asset offers excellent value.
Asset Age: | |
Reason For Selling: | They have owned for some time and would like to move onto something else |
Days Property Has Been On Market: | |
Strata Titled: | No |
Last Year/Price Sold: | |
Security Provided: | N/A National Operator |
Seller/Tenant Related Parties: | No |
Average Re-Lease Time: | |
How Long Has Current Tenant Been On Site? | |
How Long Have They Been In Business Overall? | 2020 |
Maintenance Works Required? | No |
Unapproved Structures On Site? | No |
Flood Zone: | |
Leaseback? | |
First Time Rethink Have Had This? |
• Latrobe City is the business hub of Gippsland. • Situated 135km, East of Melbourne. • According to the 2021 census, Latrobe City’s population in 2021 was 77,322 and is expected to continually grow over the next two decades with a 0.70% projected annual change from 2021 through to 2041. • There are approximately 4,300 businesses and an estimated 32,389 people working in Latrobe City. • The largest industries in Latrobe City for employment include healthcare and social assistance, retail trade and public administration The City of Latrobe is a local government area in the Gippsland region in eastern Victoria, Australia, located in the eastern part of the state. It covers an area of 1,426 square kilometres (551 sq mi) and in June 2018 had a population of 75,211. It is primarily urban with the vast majority of its population living within the four major urban areas of Moe, Morwell, Traralgon, and Churchill, and other significant towns include Boolarra, Callignee, Glengarry, Jeeralang, Newborough, Toongabbie, Tyers, Yallourn North and Yinnar. The City has traditionally been recognised as the centre of Victoria’s electricity industry, which is derived from one of the largest brown coal reserves in the world. It also the centre of a large forestry industry which services Australian Paper’s pulp and paper mill (the largest in Australia) and other sawmills. Other industries in the area include food processing (Lion Foods – Morwell), engineering, post secondary education (Federation University Australia), and the service sector. Being the largest population center in the Gippsland region, Latrobe acts as the regional headquarters for Government agencies and private operators including banks and insurance companies
Why Victoria? The most liveable city Frequently appearing in the top rankings of the world’s most liveable cities by the Economist Intelligence Unit. Melbourne has set the benchmark as a leader in all sectors including business and finance, healthcare, education and infrastructure. A thriving and cosmopolitan global hub. Melbourne consistently is outperforming its regional and global neighbours in the liveability rankings. Melbourne has well and truly positioned itself as the powerhouse city in which to live and work. Australia’s fastest growing economy Contributing to the world’s 14th largest economy, Victoria has long been a powerhouse of the Australian economy. With economic activity and full-time employment now well above pre-pandemic levels, the state’s strong performance has been demonstrated by a $474 billion Gross State Product in 2020-21. Melbourne has become internationally recognised off the back of its thriving education, services and tourism sectors. Melbourne accounts for nearly a quarter of economic activity (25% of national GDP 2019) and is ranked with some of the largest economies is South-East Asia World class infrastructure The Victorian Government is committed to ongoing investment in our world-class transport infrastructure to provide Victorians with better connectivity and a greater quality of life. The upgrades to Melbourne’s major landmarks cement the state’s vision to continuously improve and maintain its first-class destination profile. Market size Melbourne is a thriving market, rapidly growing in size, recording a population growth of 1.78% from 2021 to 2022. Victoria’s population is expected to increase from 6.74 million to 9.0 million in the coming years and Melbourne city is predicted to overtake Sydney in total population count by 2030. For more great reasons to invest in Melbourne - https://www.invest.vic.gov.au/why-melbourne
169861
10
May 8, 2020
July 5, 2030
2 x 5 years
N/A
N/A National Operator
Land tax is not recoverable
39 Grey Street, Traralgon, 342m2 - $476/m2 20 Kay Street, Traralgon, 163m2 - $450/m2 16 Kay Street, Traralgon, 164m2 - $414/m2 11 Haigh Street, 120m2 - $421/m2
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● Secure 10-year lease commenced May 2020 plus options through to 2040 ● High demand essential services medical investment trading as The Foot & Ankle Clinic. The Foot & Ankle Clinic is owned by Healthia Group, Australia’s Largest Allied Health Group ● Current compounding rent $169,861 p.a. with fixed 3.5% annual increases, assures long term rental growth ● Tenant pays all usual outgoings as per the lease (excluding land tax) ● Net income of $162,868.00 (after non-recoverable land tax of $6,993), providing a net return of 6% ● Modern approx. 342m² building with up-to-date medical fit-out ● Approx 471m² dual frontage site with circa 14.29m frontage to Grey Street and onsite carparks ● Prized location situated on high profile main road and situated amongst other major services including schools, medical and professional services ● Zoned Activity Centre (ACZ) - Latrobe City Planning Scheme ● Potential 50% stamp duty saving currently applicable to assets in regional Victoria, representing a significant upfront saving of $77,750 !