Pulse quickens in Melbourne's Western health precinct

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Footscray’s health precinct continues to expand as the inner-west’s surging population demands more local services, with a new medical clinic to open opposite the Footscray Hospital and Western Private Hospital.

Fitzroys Sales & Leasing Executive, Stephen Land negotiated a three-year lease for the purpose-built 194 sqm medical clinic building at 20 Eleanor Street to what will be known as Eleanor St Clinic.

The deal was struck with three five-year options, at $85,000 per annum net. The building is currently fitted with eight rooms, including six consulting rooms, waiting area and filing room, and amenities, and there are 17 on-site parking spaces.

Land said Eleanor St Clinic would comprise local GPs and practice nurses, with some having previously worked at Western Private.

“The immediate proximity to the Hospital precinct was a huge drawcard for the property, with the State Government’s planned overhaul of Footscray Hospital offering significant future growth prospects,” he said.

It was previously tenanted by Western Health for part of their Drug and Rehabilitation Clinic, which has relocated to another building within Eleanor Street.

The Victorian Health and Human Services Building Authority is anticipating a population surge of 40% over the next 40 years, and the Victorian Government has just completed a community consultation period for planning of the future rebuilding and refurbishment of the Footscray Hospital.

Also in the immediate area are Inner West Dermatology, Western Rheumatology, Melbourne Pathology and Western Gastroenterology.

Federal Treasury has forecast health expenditure per person to more than double over the next 40 years given the growing and ageing population. Land negotiated the deal on behalf of a private local investor with ties to the medical industry.

Brunswick retail serves up supreme result

A strata-titled ground floor shop leased to Crust Pizza on Brunswick’s iconic Sydney Road has served up another supreme retail investment result for Melbourne’s inner-north.

Fitzroys’ Ervin Niyaz and Chris Kombi sold the Crust Pizza bar at 455-457 Sydney Road to a local investor for $1.135 million under the hammer, following strong competition between four parties at auction.

The sale price reflected a sizeable building rate of $11,350 per sqm. The shop has a wide 10-metre frontage to busy Sydney Road and is on the corner of Sparta Place, and next to the Mariana Hardwick building.

It traded at a 4.7% net yield, returning $54,000 per annum plus outgoings and GST from the longstanding tenant.

The property is centrally positioned in the iconic Sydney Road retail, hospitality and lifestyle and precinct, just north of Victoria Street

Kombi said Melbourne’s strip centres have seen a growing number of spaces being used for food and beveridge purposes, with cafés, bars and restaurants enhancing their presence.

“The investor was attracted to the Crust Pizza tenancy, due to not only the brand recognition of the tenant but also the property’s central location surrounded by a massive influx of residential development, and a resulting surge for food and beverage services.”

Fitzroys’ research for its Walk the Strip report showed vacancies along Sydney Road, between Brunswick Road up to Moreland Road, tightened significantly in the year to June 2018, from 6.0% to 3.0% between Brunswick Road and Victoria Street and from 10.2% to 6.5% from Victoria Street through to Moreland Road.