Sundew Day Surgery, Joondalup
24 Sundew Rise, Joondalup, Western Australia
The Fund’s fourth asset is a purpose-built day hospital in Joondalup WA leased to national healthcare operator, Nexus Hospitals.
The medical sector is benefitting 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 leverage the market’s countercyclical timing and growth fundamentals to 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
