Rising demand for medical-based assets as investors rush to give property portfolios a resilient jab

An entire floor of an office building in Brisbane’s CBD, leased to a longstanding medical tenant, has sold as investors seek out health-based assets for their portfolios.

Property investors are giving their portfolios are healthy boost driving increased demand for medical-related assets.

INVESTOR demand for medical-based assets is being given a major boost as the rush to give property portfolios a resilient jab gains momentum amid the coronavirus crisis.

In one of the latest deals, a second-level CBD office fully-leased to a longstanding medical tenant in Brisbane’s Edward St has been snapped up by an interstate buyer.

The Melbourne-based private investor has paid $2.75 million for the 434sq m strata-titled holding, realising a net effective yield of 7.4 per cent.

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It was sold through an expressions of interest campaign by Cushman & Wakefield’s Michael Gard and Michael Collins.

The property is occupied by Executive Health Solutions and comprises an entire floor plate in the 12-level building at 46 Edward St plus three basement car parks on individual titles and additional storage.

Mr Gard said the asset was actively sought by a range of national private investors all seeking to purchase an investment in the CBD — particularly one secured by a blue chip national

medical tenant on a long-term lease.

Selling agent Michael Gard from Cushman & Wakefield outside 46 Edward St, Brisbane. Picture: Tertius Pickard

“The property was competitively sought after — in this environment, buyers more than ever are seeking medical tenants within their investment portfolios,” he said.

“Edward St is a fantastic location,” he said. “With the Cross River Rail and casino precinct underway, the city is moving towards the (botanic) gardens and this location will only continue to evolve and improve over time.”

Mr Collins said the sale price equated to a building rate of $6336/sq m and it was a very unique property.

“Although the building is strata titled, there are only a small number of owners within this building — the carparking is also exceptional, plus the buyer owns the car parks on separate titles.

“The buyer recognised the strength, longstanding history and national representation of the medical tenant and the rarity of this particular offering,” he said.