Pacific Private Clinic building on Nerang St, Southport, sells for $40M to Sydney-based Elanor Investors Group

A Southport hospital has sold to a Sydney-based investment group in one of the year’s largest commercial deals.

CANADIAN real estate healthcare giant NorthWest Healthcare has offloaded a Southport hospital building for $40 million.

NorthWest has sold the seven-level Pacific Private Clinic building at 123 Nerang St to ASX-listed Australian investment and funds management business Elanor Investors Group.

The sale settled on March 16 and was in conjunction with the $83.3 million purchase of a medical building at 55 Little Edward St, Spring Hill, home to the Queensland Eye Hospital.

Cushman & Wakefield’s Mike Walsh and Peter Court handled the negotiations.

Mr Court said it was an offmarket transaction.

123 Nerang St, Southport

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“We spoke to a number of our key clients and the deal progressed over a number of months and it finally settled (last week),” he said.

“The main attraction was starting a medical base fund and these assets – 55 Little Edward St and Pacific Private – had a medical base and they saw that as a robust asset class to get into, which proves to be right given the current situation.”

The Pacific Private building has three tenants comprising Pacific Private Day Hospital, which offers breast and cosmetic surgery among other services, QScan Radiology and Tasman Oncology.

Northwest Healthcare has sold Pacific Private Day Hospital, 123 Nerang St, Southport, to Elanor Investors Group for $40 million. Picture: Jerad Williams

The sale reflects a square metre rate of $5007 and an initial yield of 5.4 per cent.

The building has a net lettable area of $7946 and an occupancy rate of 82.7 per cent.