Sundew Day Surgery, Joondalup

24 Sundew Rise, Joondalup, Western Australia

The fourth asset we are acquiring for the Fund is a modern, purpose-built day hospital located in Joondalup, Western Australia. Leased to national healthcare operator, Nexus Hospitals, the facility presents a prime opportunity to purchase a quality medical asset at what we believe to be a softening in the market cycle.

The medical sector is benefiting from several key demand drivers, including a steady increase in healthcare and related expenditure, rising demand from Australia’s aging population, and a recent increase in private health insurance uptake. At the same time, supply remains limited due to the tightly held nature of specialist medical facilities, the scarcity of suitable medical sites, and the high replacement costs of existing assets.

Our strategy for this asset is to enter the market at opportune timing to leverage these growth fundamentals and capture potential value uplift. There is also potential to maximise the rental growth of the asset, with the facility undergoing an open market rent review in March 2025. Having invested significantly into the custom fit-out, we consider the existing tenant to be well-embedded to the property, providing for strong retention prospects as we look to enact our leasing strategy.

 

Sector

Medical



Location

Joondalup, Western Australia



Tenant

Sundew Day Surgery (Nexus Hospitals)


 

INVESTMENT HIGHLIGHTS

  • The day hospital is situated in a prime location within the established Joondalup Town Centre, offering strategic proximity to Joondalup Private Hospital, Joondalup Health Campus, and Edith Cowan University.
  • The property offers a blue-chip income stream secured via a lease to national healthcare operator, Nexus Hospitals – Australia’s second largest day hospital platform.
  • The asset offers the potential for strong rental growth given the specialised nature of the premises, the scarcity of suitable land for medical sites within the Joondalup Town Centre, and significant increases in construction and fit out costs.
  • The existing tenant is well-embedded to the property having invested significantly in the custom fit-out, with the current lease providing strong retention prospects through two 5-year options at expiry of the current term.

Site and Surrounds

Sign-up

to get our expert insights delivered straight to your inbox.

Subscribe to Newsletter

  • This field is for validation purposes and should be left unchanged.