Hong Kong investors have snapped up a Caroline Springs medical supersite for an eye-watering $12.5 million.
The Active Medical site, at 224-226 and 228-232 Caroline Springs Boulevard, attracted a number of international and domestic investors, who pushed the price beyond the projected $11 million.
It is the biggest medical site sale in Victoria this year, according to Jimmy Tat of commercial real estate agent CBRE.
Touted as an investment offering an “unparalleled combination of prime location, modern improvements, blue chip tenants and return profile,” the medical supersite is 3135 square metres and home to a radiologist, dentist and general practitioners.
The combined rental income is more than $665,000 a year.
CBRE spruiked the site as being within walking distance of the new Caroline Springs train station and located within Victoria’s “booming western growth corridor”.
“[The site] holds a unique position in its market, with a strong tenant retention history and has the benefit of significant future development upside,” its listing for the site said.
“Key attributes of this outstanding property include premium medical investment with six tenancies to well-established medical tenants … [and] direct pedestrian access to CS Square and Central Shopping Centre.”
Mr Tat said: “[The site] was predominantly seen as a secure asset and [offering a service] that is a necessity.
“The client was mentioning that the west is growing and he knows there’s a need for these types of services. There are more suburbs being created and population is growing rapidly.”
The site is located in a comprehensive development zone that allows for a six-storey development, subject to council approval.
The corner block backs on to the carpark at Caroline Springs Central Square and is across the road from Lakeview Senior College and Quest apartments.
The sale was achieved through an expressions of interest process, which closed on August 15. Settlement is scheduled to be by the end of November.