Healthcare group leases ready-to-go theatre
Springboard Healthcare Services has leased a day stay hospital at Springvale.
The new entity, formed by a group of health and medical operators, is paying starting annual rent of $180,000 for 17 Windsor Avenue.
Sandro Peluso, who brokered the deal with CBRE colleagues Kai Wang and Jimmy Tat, said having the property fit out for an operating theatre at a time when there is a lack of supply, saw it attract interest.
“Tenants are now putting their locational preference second on the priority list [to buying or renting] and focusing on attaining a suitable building,” he added.
“We are finding that, along with the rise in the cash rate to 3.85 per cent, operators are experiencing difficulties acquiring funds to build and fit out the expensive infrastructure needed for a day hospital so are searching for existing facilities,” according to the agent.
Central spot
Until recently occupied as the Windsor Avenue Day Surgery and with a Melbourne Pathology and GME GastroMedicine & Endoscopy, the 338 square metre Springboard property is diagonally adjacent to the Springvale Shopping Centre, walking distance to the suburb’s train station.
On 775 sqm, it also contains 12 car parks (story continues below).
Mr Peluso said another factor driving demand for the property was the long national and local elective surgery wait list.
“In Victoria, elective surgery patients reached 203,045 in 2022-2023,” he added.
“Similar trends were seen in New South Wales with the patient list reaching 144,999 in 2022-2023,” according to the executive.
“Federal and State governments have categorised items such as medicinal costs, medical research and NDIS funding as important, which is reflected through government funding and reducing costs for consumers”.
Mr Wang said “with an ageing population, increased cost of living and ongoing economic uncertainty, it is encouraging to see that the Australian government has not only committed to supporting the sector but has forecast spending well into the future, again, which has led many investors to regard healthcare assets as being ‘recession proof’.”
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