This article originally appeared in The Courier Mail
A growing Australian wealth and asset management firm has secured a medical facility with development upside in a master planned healthcare precinct north of Brisbane.
Real Asset Management paid $8.3m for the 2200sq m site at 6 Silvyn St. Redcliffe, which has a 1000sq m single storey building which houses Qscan Radiology Clinics.
Qscan has 12 years of its lease remaining with two five year renewal options. Vacant land at the rear of the building has its own title and is a potential development site for a commercial, aged care or a residential complex.
The transaction generated a fully leased yield of 5.9 per cent. Real Asset Management head of real estate Will Gray said he and his Brisbane-based team were attracted to the asset because of its strategic location within a master planned healthcare precinct and the long-term income stream generated by the anchor tenant in Qscan.
He said the site was 350m from Redcliffe Hospital and part of an ”ecosystem” of medical facilities.
“We also loved the fact that Qscan Radiology is a well-established high calibre tenant and a market leader in its field – a field that has favourable defensive characteristics,” Mr Grey said. “We are particularly interested in realising the full value of vacant under-utilised land on the site.
“It could accommodate a variety of permitted uses, such as more than 4000sq m of commercial offices or an allied health facility or more than a 100-bed aged care facility which lends itself to the immediate surrounding demographic and location.”
Mr Gray said the property would not be part of the fund manager’s $340m Australia Retail Property Fund.
He said it would be placed in a separate account offering its high net worth investor base a long-dated stable and reliable yield with some potential short-term value-add.