In an unprecedented sign of consumer confidence, a local investor has splashed almost $13.5m on a premium 71 bed residential aged care facility, with a secure lease in place to listed aged care group, ‘Japara Healthcare Ltd’.
Located at 340-344 Springvale Road, Springvale on a high profile 4,347sq m* corner on the cusp of the Springvale Activity Centre, the fully refurbished facility was sold with a brand new long term lease in place, returning $750,000 per annum. This reflects a strong benchmark yield for the social infrastructure and healthcare sector, transacting at approximately 5.6%.
The deal was negotiated by Julian Heatherich, Benson Zhou and Mark Stafford of Savills Australia.
According to Mr Heatherich “Despite the current uncertainty and volatile market sentiment more generally, we saw strong demand throughout the campaign and received multiple offers.
“This sale perfectly demonstrates an ongoing and strong buyer appetite for assets with long secure leases and income, and in particular those that provide a non-discretionary based service, such as aged care,” he said.
Mr Zhou also noted strong and ongoing demand from overseas investors towards the close of the campaign in spite of current conditions; “With a record low cash rate off-shore buyers are seeing an opportunity to capitalise on strong performing and secure assets.”
Learn more about Savills Metropolitan & Regional Sales.