Bowen Hills medical investment property sells for $20,500,000 in off-market JLL deal

BRISBANE, 1 November 2021 – JLL’s Tim Jones, Simon Quinn and Sam Byrne from the Metropolitan Sales & Investments team have sold 1/36 Edmondstone Road in Bowen Hills in Brisbane’s inner north for $20,500,000 to RAM Group in an off-market deal.

The modern 2,158sqm building was recently refurbished to accommodate the medical occupier, a specialist fertility group, and includes an embryology laboratory, andrology facilities, procedure rooms, recovery areas, consultation and scan rooms as well as patient waiting areas and training rooms. The property also benefits from excellent natural light, generous on-grade parking and exposure to a main thoroughfare in Edmondstone Road.

The specialist facility was sold with a 10-year WALE for $20,500,000, representing an initial yield of 4.74% which reflects $9,499/sqm on NLA.

JLL’s Tim Jones said, “Over the last few years, this area adjacent to Perry Park in Bowen Hills has transitioned from being home to largely secondary, office warehouse-style buildings to being predominately medical.”

“The Bowen Hills Specialist Medical Centre was arguably the catalyst project, however good car parking ratios, relative affordability, proximity to rail and access to affluent residential catchments have all been contributing factors in securing medical occupiers to the precinct,” he said.

Simon Quinn, Director of Alternate investments for JLL said, “Healthcare Real Estate continues to perform strongly off the back of the defensive nature of the asset class.”

“We have seen an influx of capital looking to be placed as more and more investors focus on the sector. This is driving significant capital growth for medical centres, day hospitals and private hospitals.”

The sale marks more than $150,000,000 in settled deals within Bowen Hills, Newstead and Fortitude Valley in 2021 for the JLL Metropolitan Sales & Investments team.

RAM Head of Real Estate, Will Gray said the Bowen Hills property was secured on a long-dated contract on favorable purchasing metrics and was a fantastic addition to the RAM Essential Services REIT.