Cedar Woods sells Williams Landing medical centre to Barwon Investment Partners
9 April 2019
Cedar Woods Properties has today announced the sale of the ground floor of its 111 Overton Road commercial building in Williams Landing Town Centre to Barwon Investment Partners Pty Ltd for $8.2 million. The sale of the medical suite located in 111 Overton Road will represent an initial yield of 6.7%.
The sale of the tenancy continues Cedar Woods’ successful strategy of preleasing commercial buildings and on selling prior to completion – following the sale of the 13,000m2 Target Headquarters to Centuria Investment Funds for $58.2 million and the sale of the 3,126m2 Minister For Finance office building for $25.9 million to the Hellenic Club of Canberra, which is currently under construction.
The ground floor medical centre, which consists of 1525m2 space (plus 57 car bays), has been leased to a subsidiary of national medical business, Cornerstone Health Pty Ltd, trading as Our Medical Home. The centre will offer a range of medical services including GPs, radiology, pathology, dentistry and a chemist.
The new centre will increase access to quality primary healthcare fora wide catchment area with over 1 million people located within 30 minute drive time.. Centres open from 7am until 10pm and include bulk billing GPs, available to walk-in patients with no appointment necessary. Centres also include pharmacies, pathology and X-ray facilities. 111 Overton Road is the first strata office building at the ASX listed developer’s $2.5 billion Williams Landing community. In addition to Our Medical Home Centre, the five-level commercial building will also include 47 strata office suites, all of which were pre-sold prior to construction commencing in 2018.
Cedar Woods Victorian state manager Lloyd Collins says that the development and sale of the medical centre presented a unique opportunity for investors and aligned with the developer’s strategy of responding to the growing demand for commercial tenancy in the west.
“Our Medical Home, will operate until late each night and will further activate the Town Centre and will support our licensed restaurants and retail offering,” said Collins.
The acquisition takes Barwon Investment Partners’ healthcare funds under management to over $650 million across two dedicated healthcare funds. Barwon’s partner and portfolio manager Tom Patrick noted that the appeal of the Williams Landing precinct as part of western Melbourne’s broader growth story supported the asset’s investment thesis.
“We anticipate that continued population growth in western Melbourne, and in particular Williams Landing, will support long-term demand for affordable and well-located healthcare services in the area,” said Patrick.
According to Wyndham City's Economic Development Strategy, healthcare is the third largest sector (after manufacturing and retail) with over 65 per cent of Wyndham’s healthcare workforce employed outside of the area, meaning that Williams Landing will play an important role in contributing to the labour force needs of the sector, as well as offering essential healthcare services to the growing community.
“Williams Landing is located just a 20 minutes’ drive or 28 minute train ride from Melbourne CBD and is becoming the commercial hub for the west, attracting a variety of tenants and uses. We have prelease office opportunities available from 500m2 to 20,000m2 and are actively seeking new office tenants to kick start the next phase of office development.
In addition to contemporary office space at economic rents, Williams Landing offers an array of amenity such as the shopping centre, connectivity to the train station and direct access to the Princes Freeway." adds Collins.
“Barwon Investment Partners has considerable expertise in the acquisition and management of healthcare real estate. We look forward to working with them to attract further medical uses to the Town Centre.”
Designed by Gray Puksand Architects and constructed by Hacer Group, 111 Overton Road is slated for completion in late April 2019.