Vacant East Melbourne day hospital sold to off shore investors for around $10m
No patients, no operator — so why did this East Melbourne hospital sell in a flash? Find out what turned investors’ heads.
A refurbished East Melbourne day hospital has moved on quickly into the hands of an offshore buyer for nearly $10m.
The freshly refurbished facility at 23 Clarendon St was snapped up after attracting eight offers and 28 inspections, despite the property being vacant.
The three-level building includes a 13-bed day hospital, consulting suites, upper-level offices, and basement parking for 21 cars, all set on a 1,011sq m block in the heart of the Melbourne east medical precinct.
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Previously home to Virtus Health, the day hospital provided IVF, gynaecology and dental services before operations were relocated earlier this year.
The property underwent a major ground-floor refurbishment before hitting the market.
CBRE Melbourne executive managing director of capital markets Mark Granter said the level of demand underlined the strength of the sector.
“East Melbourne is one of the tightest-held pockets in the city, and without doubt Melbourne’s premier medical precinct,” Mr Granter said.
“It’s in an outstanding location — you’re surrounded by a who’s who of major medical institutions. You’ve got Epworth, the maternity hospital, Epworth Freemasons, the Eye and Ear, and now the new oncology unit on Albert Street. It’s a serious medical hub.”
Mr Granter confirmed the property sold within the quoted price guide of $9m-$10m, adding that demand for non-traditional real estate was continuing to build.
“Healthcare real estate is marching in step with other alternative asset classes, and for good reason,” he said.
“We’re seeing a surge of investor interest because the fundamentals are so strong. Healthcare is one of those classic non-traditional sectors that’s really coming into its own.
“There’s a clear shift happening, alternative assets are having their moment.”
The sale was handled by CBRE’s Healthcare & Social Infrastructure team, including Sandro Peluso, Marcello Caspani-Muto and Kai Wang.
Mr Peluso described the sale as “hotly contested,” noting that eight unconditional offers in the first round was “unprecedented for vacant real estate.”
Mr Wang added that more than $80m in unallocated capital is now chasing quality healthcare assets across Victoria.
The buyer has not revealed their future plans for the site, but the property is expected to continue operating as a healthcare or consulting facility.
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Originally published as Vacant East Melbourne day hospital sold to off shore investors for around $10m
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