6/300 Toorak Road, South Yarra
Buyers continue to be attracted to strata-titled and medical property investments, with a South Yarra property selling for a strong $2.9 million.
Fitzroys’ Lewis Waddell and Chris Kombi managed the sale of 6/300 Toorak Road, South Yarra on behalf of a self-managed super fund investor.
The sale price reflected a tight 5.5% yield and a high building rate of $12,500 per sqm.
The property is occupied by multi-location operator MyClinic.
Multiple offers were received via the competitive Expressions of Interest. A local investor is the new owner.
Waddell said the buyer was particularly interested in the medical tenancy profile.
“The medical property asset class has demonstrated a great resilience over recent years. Investors are showing confidence in medical tenants to be able to pay their rent even amid broader headwinds due to cost-of-living pressures and interest rates.
“Well-located assets with leases to quality health and wellness operators are attracting a range of investors seeking security at a time of volatility in the residential and share markets.”
He said the purchaser was also keen on the property’s strategic location.
“There’s a real health focus through the area supporting this booming pocket of South Yarra, with the opening of The Commons Health Club, Gurner’s Saint Haven taking more space within Capitol Grand, and Soak Bathhouse committing to space at the 10 River Street building close by.
“A major evolution has been taking place in the Forrest Hill precinct for a number of years, and it’s still seeing huge amounts of commercial and residential development. That has boosted the local catchment and demand for essential services.”
Kombi said a number of investors continue to be attracted to strata-titled properties.
“Land tax is not a major implication on the net return for strata-titled assets,” he said.
Kombi and Waddell recently sold the strata-titled medical asset at 36 Ryrie Street in the Geelong CBD under the hammer for $1.59 million, on a 5.6% net yield, and high building rate of $12,000 per sqm.
The property is securely leased to national operator MoleMap on a brand-new long-term deal.
“In both instances, our campaigns generated local and national interest in the properties given their outstanding defensive nature, excellent positioning in busy locations, and the additional lure of attractive tax structures, ultimately leading to strong prices and tight yields,” Kombi said.
