Real Asset Management has purchased a medical facility with surplus land for further development for $8.3 million on the Redcliffe Peninsula in Queensland, about half an hour’s drive north of Brisbane.
The purchase of the 2,200 sqm site with a modern 1,000 sqm single-story building which houses Qscan Radiology Clinics will generate a fully leased yield of 5.9%.
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.
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.
The Silvyn Street site is 350 metres away from Redcliffe Hospital and part of an ecosystem of medical facilities that surround it.
“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.
“We are particularly interested in realising the full value of vacant underutilised land on the site which could accommodate a variety of permitted uses, such as more than 4,000sqm of commercial offices or an allied health facility or a more than a 100-bed aged care facility which lends itself to the immediate surrounding demographic and location,” he said.
Mr Gray added the asset would not be part of the firm’s successful Australia Retail Property Fund, which has grown to more than $340 million, and would instead 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.