Not for profit accepts discount for hospital

The Skin & Cancer Foundation listed the Westmead asset in May.

The Skin & Cancer Foundation has sold a west Sydney essential services asset with a leaseback.

The strata titled Westmead building has development upside – with a quorum.

The not for profit is banking $8 million for the 26.39 per cent stake of the Specialist Medical Centre, in Westmead.

Also known as The Skin Hospital, the property includes a three level, 1611 square metre freestanding building at 7 Ashley Lane – a 3279 sqm plot.

As well, two adjoining suites – 203 and 204 – in the neighbouring strata titled office, 151 Hawkesbury Road, form part of the deal.

Based on the rent the vendor was offering to pay – the deal, with a high net worth local investor, reflects an 8.02pc initial net yield.

Knight Frank’s Sam Biggins and Jessen O’Sullivan listed the asset in May.

Archerfield Property Group was transaction advisor.

High yield

Part of the Westmead Health Precinct, the Skin & Cancer Foundation assets traded against initial $10m-plus expectations.

A spokesperson for the vendor said sale proceeds will be tipped into core clinical and teaching facilities and in its other west Sydney real estate.

“The asset offered abundant investment and future potential development opportunity, especially given its location adjacent to the Westmead Health and Innovation District,” Mr Biggins said (story continues below).

Charter Hall’s new Innovation Quarter is also across the road.

“The defensive nature of high performing healthcare assets are attracting significant volumes of new-to-sector capital, both private and syndicator-led,” he added.

“We expect to see this profile of investors remain active throughout 2025 particularly in the sub-$20m price range,” according to the agent.

Tactical deal

Mr O’Sullivan said “the 26.39pc strata stake represents a strategic holding in the Specialist Medical Centre strata scheme, particularly in the context of the New South Wales Schemes Development Act 2015 which requires agreement of 75pc of owners to commence the strata renewal or redevelopment process”.

“The buyer may seek to build on their ownership and amalgamate further holdings in the building in time,” he added.

Westmead is about 25 kilometres from Sydney’s CBD.

A proposed Metro station is about 200 metres away.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.