Deakin medical clinic a rare chance to invest in health sector

A rare investment opportunity has presented itself in the healthcare sector with a massive inner South complex set for auction on December 6.

The 505-square-metre Deakin clinic is currently occupied by Genea, a world leader in fertility and IVF, which has just signed a new five-year lease with a five-year option.

Genea has made the substantial medical and consulting rooms its home since 2009 with its original fitout costing nearly $2 million. That was followed by the completion of another upgrade in January.

Genea is active in 60 countries and has some 600 clinics.

The medical centre is being sold through Burgess Rawson Canberra and CBRE Canberra.

Guy Randell of Burgess Rawson says the medical sector is a highly sought-after investment in the ACT – both from a tenant and investor perspective.

“There are numerous new medical opportunities being developed to meet demand,” he says.

“Many centres are now over-prescribed and tenants are searching for newer and larger premises.”

Randell says Burgess Rawson is dealing with three of the biggest health providers in Australia, which are looking for new facilities in Canberra.

He says their needs include a minimum 15 consulting rooms along with additional services including pharmacy, physiotherapy, pathology and dental.

“We are also working with current providers in key Canberra suburbs who need additional space or new built buildings – demand is far exceeding capacity,” Randell says.

“Health tends to attract long-term tenants while medical providers offer strong covenants and security.

“It is one of those in-demand industries, like childcare and petrol, which are fundamental to the social fabric of communities,” he says.

The Genea facility in Deakin also has the advantage of being within a health precinct with a large, neighbouring range of specialist health providers.

“This enables patients and clients to meet all their needs in one location,” Randell says.

The Burgess Rawson chief says healthcare holds an attraction for the astute investor.

“We can reasonably predict Australians will always require medical services and bricks-and mortar-investments that service that sector will always be sought-after,” Randell says.

“Interest rates may rise and fall, but secure asset classes, like medical, will always be considered a wise investment and a strong addition to a balanced portfolio.”

Randell says investors are taking advantage of the security of commercial property in a low-interest-rate environment.

“They’re seeing that strong and secure lease terms with fixed increases are a sensible option compared with the relative volatility of the share market,” he says.

18-19/2 King Street, Deakin. Net income: $193,692 a year plus GST. Auction: Tuesday, December 6, Doltone House, Sydney. Inspection: By appointment. Agents: Guy Randell and Mitchell Frail, Burgess Rawson, 0430 272 999 or 0429 103 979; CBRE, Andrew Stewart and Mark Nicholls, CBRE Canberra, 0418 248 717 or 0417 239 551

Who’s in the market: Medical centres are in demand among both investors and long-term tenants.