Top northern Melbourne clinic offers lease to medical leader

JLL has been appointed to sell a prominent Bundoora investment property leased to I-MED, one of Australia’s biggest diagnostic imaging network.

Offered for the first time in over 32 years, 111-115 Plenty Road offers an affordable healthcare investment in the established suburb of Bundoora. Benefiting from high exposure to key arterial, Plenty Road, the property comprises a single-level purpose-built 570 square-metre building on a 2,299 square-metre landholding and will be sold subject to a lease to I-MED with options until 2030, at a current net rental of approximately $285,407 per annum net, as at July 2024.

Located close to Bundoora Square shopping centre, which hosts drawcards Woolworths, Coles and Chemist Warehouse, and located just down the road from RMIT’s Bundoora campus, the property offers exceptional transport options with the Metropolitan Ring Road just one kilometre away and a tram stop at its front door.

The property has operated as a radiology clinic for more than 30 years with I-Med Radiology Network taking over the business in 2015, after decades of private ownership and operation.

According to JLL’s Senior Executive – Healthcare & Life Sciences, Mark Stafford, who is overseeing the marketing campaign, the property provides opportunities for a broad range of buyers including local and off-shore investors, as well as specialist medical trusts.

“There is no doubt that this property will attract a significant amount of interest given its outstanding position and the credentials of the operator. The radiology clinic has been in occupation on the site for more than 30 years and has strong ties with the local community along with a significant existing client base” he said.

“Nor will it be lost on the astute investor that diagnostic imaging is in high demand and, with an ageing population, is expected to experience solid growth over the coming years. Healthcare remains one of the top expenditure items for Australians, with an estimated $241.3 billion spent on health goods and services in 2020 – 2021 – representing an average of approximately $9,365 per person,” he said.

According to healthcare-focused market research firm Insights10, Australia's diagnostic imaging services market was valued at $6.3 billion in 2022 and is estimated to expand at a compound annual growth rate of 6.4 per cent through 2030 based on an ageing population and likely rise in the incidence of chronic illnesses.

Mr Stafford said that aside from its significant leasing profile, the Plenty Road property carried sound long-term investment attributes based on the site’s high exposure, main-road location, its generous size, and the growth in population of the surrounding residential areas.

“This part of Melbourne has been growing very strongly, heavily influenced by the nearby Metro Ring Road which offers locals excellent road access right across Melbourne,” noted Mr Stafford. “Over the last decade or so, it has attracted the likes of RMIT, which has a major campus here, led to the construction of the massive University Hill residential, retail and business complex/cum township, and numerous other corporates and retail businesses including the likes of Woolworths, Coles and Chemist Warehouse.

“The choice these businesses and institutions have made in locating here has been huge vote of commercial confidence in the area based on solid evidence of its enormous current and future growth potential.”

JLL Head of Asia Markets Mingxuan Li noted that “healthcare assets remain popular with offshore investors, as the operators tend to occupy their premises for the long term, mainly attributed to the significant cost of relocation”.

Mr Stafford noted that investors are likely to resonate with the operator, as I-MED is Australia’s largest diagnostic imaging network which offers comprehensive medical imaging services at more than 230 clinics. It is also the largest and most experienced provider of teleradiology solutions in the Asia-Pacific region.

The property will be sold by Expressions of Interest closing March 20, 2024 at 2pm.