Brisbane’s Spring Hill remains medical hub as top floor JLL sale yields over five percent

BRISBANE, 25 March 2022 – The top floor of 113 Wickham Street in Brisbane’s inner city Spring Hill has sold for $2.9 million, representing an initial net yield of 5.10% in a deal negotiated by JLL Metro Sales & Investments’ Harry Borger and Sam Byrne.

“The 411sqm full-floor suite at 4/113 Wickham was sold to a local private investor who was attracted to the asset’s quality investment fundamentals, led by the strong medical covenant,” said JLL’s Harry Borger.

“The property is underpinned by a brand-new five-year lease to a leading medical tenant, with the added benefit of in-built rental growth through fixed 4.00% increases,” he said.

“In addition, significant recent capital expenditure by the previous landlord into tenant fit-out has enhanced the asset, further consolidating the strategic importance of the property from an operating and service delivery perspective.”

“Spring Hill remains the dedicated medical and healthcare precinct on the edge of the Brisbane CBD, and the result of the sale reflects the strength of this market,” he said.

“We have seen significant cap-rate compression in healthcare real estate over the last 12 months. The asset class is proving highly desirable for investors, particularly those with mandates for defensive income streams.”