Colliers International sells two development sites in metro Melbourne and Sydney, marketing intentions for aged care residence and childcare centre
Two development sites in metro Melbourne and Sydney have sold, with the intention to develop an aged care residence and childcare centre respectively.
Colliers International’s Healthcare & Retirement Living team brokered the deals on behalf of the two vendors before the properties went to market.
“Leveraging depth and breadth of healthcare experience, together with a partnership approach in strategically advising our clients, is the foundation of how Colliers International’s Healthcare & Retirement Living team operates,” Shalain Singh, Head of Healthcare & Retirement Living, said.
“It’s a symbiotic relationship.”
Manager for Healthcare & Retirement Living, Mark Agius said the sales results highlighted the team’s in-depth understanding of the drives and growth strategies of its clients’ businesses across the healthcare spectrum.
The structured off-market transaction in metro Melbourne involved combining several adjoining residential properties to create one large aged care development site.
“Our team’s understanding of the highest and best use, finance and business mechanics of aged care operators meant we were able to extract a 17 per cent higher premium than the residential development site value,” Mr Agius said.
“This in turn secured an offer at a premium through strategic vendor/purchaser matching and walking purchasers through the value proposition for their individual businesses.”
The metro Sydney transaction involved initiating the sale of two non-core landholdings within a client’s portfolio, as part of a recapitalisation and divestment strategy.
“Understanding the drivers for business, including demographics, income profiles of the area, and level of acceptable competition for childcare, saw what would have been two residential dwellings combined to form a larger site suitable for a childcare centre,” Mr Agius said.
“Our team was able to extract a premium for the site through this repositioning and match the vendor with the purchaser.
“Following on from the initial offer, a revised offer was made and executed the heads of agreement within 16 days of signing the agency agreement.”