Moreton Bay medical centre site purchased for $10m

A developer has purchased a 4000 sqm site next-door to a Moreton Bay hospital for $10 million, with plans to construct a health care centre with up to eight new tenancies. SEE THE PLANS

An under-utilised site next to a hospital north of Brisbane is set for a major transformation, with a developer splashing big cash in the hopes of building a brand new medical centre.

A 4,454 sqm site housing Qscan in Redcliffe at 6 Silvyn Street, Redcliffe has sold off-market for $10.4m to Allamanni Developments.

Qscan will remain as the anchor tenant and the purchasers plan to further develop, subject to approvals, the site to include further medical services

According to a development application lodged at 6 Silvyn Street, Redcliffe by Silvyn Street Redevelopment Pty Ltd, the proposal is for a one-storey contemporary health care centre, featuring the existing Radiology clinic, in addition to up to eight new health care services tenancies contained in a new purpose-built facility.

“It is intended that this building will be primarily occupied by uses that will have a direct nexus with surrounding health uses, including the Redcliffe Hospital and the existing QScan clinic which will be retained on site,” the report reads.

The proposed additional tenancies are expected to accommodate health-related services, such as general practitioner centres, specialist consulting suites, pathology clinics, and allied health. Picture: Contributed

“The additional tenancies are expected to accommodate health-related services, such as general practitioner centres, specialist consulting suites, pathology clinics, and allied health.

“The existing shared carparking and servicing arrangements with the existing QScan building will be retained and upgraded where required.”

In assessing this site, Allamanni’s Acquisitions Manager, Irina Monnier, recognised a significant opportunity to develop a medical centre, given its proximity to Redcliffe Hospital.

“The long-term commitment from Qscan as an anchor tenant certainly validates the site for additional medical uses and adds considerable value to our proposed development,” Ms Monnier said.

“We are excited to collaborate with healthcare professionals to deliver top-tier medical and rehabilitation facilities for the benefit of the local community.”

Transacted by Colliers Queensland agents Nick Wedge and Chris O’Driscoll on behalf of RAM Group, 6 Silvyn Street is located adjacent to Redcliffe Hospital offering a convenient location for a medical asset.

A concept design of the proposed medical centre at 6 Silvyn Street, Redcliffe. Picture: City of Moreton Bay DA Tracker

Mr Wedge said with more than $616,000 per annum passing income the sale realised approximately 5.41 per cent yield.

Roughly half of the site is long term leased to Qscan until March, 2032 and the balance land provides an opportunity for further development.

“The rise in demand for essential services in recent years, such as medical centre assets will continue due to the increased resilience to economic conditions,” Mr Wedge said.

Mr O’Driscoll said the medical sector remained one of the most buoyant sectors in commercial property.

Ongoing government investments in healthcare have been instrumental in driving the expansion of the sector, solidifying it as a reliable and secure source of income.

“The surge in population has fuelled the demand for medical centres, strengthening the position as a viable investment opportunity,” Mr O’Driscoll said.

“The involvement of active institutional investors in a low interest rate environment has resulted in medical and healthcare facilities in Queensland achieving record breaking sales in past years, including major portfolio transactions, with total sales volume reaching nearly $479 million in 2022 and $500 million in 2021.

“This off-market sale saw a great result for both the seller and the purchaser in a strong performing sector.”