Core Capital’s property fund purchased the Lake Goollelal Medical Centre, a multi-disciplined Medical Centre, located at 210 Wanneroo Road in Madeley, Western Australia. The Centre is set on 4280sqm of prime real estate with parking and a strong street presence on Wanneroo Road.

 

The site marks the middle of the Northern Growth Corridor, and caters for the increasing number of residents in the area along with the multiple aged care facilities in close proximity. The existing building is fully let and consists of eight tenants including Doctors, Radiology, Physiotherapy, Dental, Opticians and Psychiatry, within its 1480m2 of net lettable area.

 

The site was purchased at a 6.5% yield, however, what made the investment attractive was the capacity of the site for a further 870m2 of net lettable area, with a current approval in place. This 150%+ expansion of the site was completed with the existing tenants remaining open for business.

 

This add-value style of investment strongly aligns with Core Capital’s investment model. It is Core Capital’s view that maintaining a strong income on a property whilst constructing further building and increasing lettable space is an attractive option for investors in the current market.

 

The recent hardening of lending covenants from major financial institutions tested Core Capital to finance the property on attractive terms without recourse to investors, minimising investment risk.

 

With strong interest in neighbourhood and primary road medical businesses, the return on investment has been strong and weighted average lease expiries have increased significantly.