The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
AFFORDABLE HOUSING DEVELOPMENT SUMMIT THURSDAY, AUGUST 28, 2025
AFFORDABLE HOUSING SUMMIT THURSDAY, AUGUST 28, 2025
EVENT DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
12
print
Print
OtherTaryn ParisMon 24 Jan 22

Silverstone Developments Offloads Healthcare Asset for $26m

f54805d6-d023-4530-b348-7fe97ad0eb29

A fully-leased medical office property still under construction has been sold off-market for $26 million in Brisbane, evidence the ravenous appetite for healthcare assets has rolled into 2022.

The Silverstone Developments project at 11 Commercial Road, Newstead is the latest in a string of $260-million worth of transactions in the private developer’s books during the past 18 months, increasingly focused on healthcare developments.

More than two-thirds of the “quasi-medical” office building in Newstead has been leased to i-Med and sold to the John James Foundation.

Silverstone Developments managing director Troy Daffy said the focus on the healthcare sector had delivered tighter yields, strong demand and sticky tenants, with Dexus and Northwest REITs partnering in fund-throughs across south-east Queensland.

“As a private developer, those deals where you get in and out, they’re a good outcome,” Daffy said.

“For us it’s opportunistic, where we can acquire land, that might be near an existing healthcare asset, where you might see a large population growth and where it’s lacking in medical assets.

“We’ll secure a large parcel of land. And that’s a strategy that’s worked quite well for us … it’s a long game, but it’s worked well for us. We started doing this about five years ago, and it’s just all coming together (now).

“We’re also taking another approach where we’re trying to align ourselves with medical users. We’ve probably doubled down on both approaches.”

Daffy said some of their developments had started as traditional commercial developments but as Silverstone developed a greater understanding of the value of the medical sector it had honed its approach to developments.

▲ An artist's impressions of Silverstone Development’s proposed tower in South Brisbane. Image: Mode Design


Cushman & Wakefield’s Mike Walsh and Peter Court handled the end-to-end transaction after initially selling the vacant site to Silverstone Developments in 2019 for $2.9 million.

“The sale is further evidence of the well-documented theme of capital seeking a secure, quality-built asset that is well-leased with strong tenure,” Walsh said.

“Combined with the building being brand new and occupying a prime location in Brisbane’s most sought-after mixed-use precinct, John James Foundation moved quickly to secure the opportunity off-market.”

Walsh said the sale price of $12,077 per sq m had been in line with market expectations.

It’s been a busy few months for the south-east Queensland developer with the Spring Hill Day Hospital under construction and now 70 per cent leased, following the 12-year lease agreement with Queensland Fertility Group. This is being delivered on a fund-through arrangement with Dexus.

The developer also lodged plans for a 9000sq m, 12-storey landmark healthcare facility in the Mater Hill precinct on an 1800sq m parcel of land.

Silverstone has tapped a niche market flush with cashed-up institutional investors looking for exposure to higher yields and sticky tenants in the healthcare sector.

The pandemic has highlighted the importance of healthcare property assets and the growing appetite for improved healthcare outcomes for an ageing population.

International superannuation funds have been dipping their toes into the Australian healthcare property market with growing interest in the stable assets and good returns on offer.

OtherOfficeHealthcareAustraliaBrisbaneConstructionReal EstateConstructionSector
AUTHOR
Taryn Paris
More articles by this author
ADVERTISEMENT
TOP STORIES
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
6 Min
Exclusive

Industry Stoush Looms Over Construction Code Pause

Patrick Lau
4 Min
Exclusive

New Wave of Capital Washes Over Evolving Surf Park Sector

Phil Bartsch
11 Min
North Sydney TUD Plus HERO
Exclusive

NSW Housing Fix Tips North Sydney into New Era

Vanessa Croll
7 Min
 GemLife site Currumbin Waters EDM
Exclusive

Pop-Out Apartments Power GemLife’s $450m Vertical Experiment

Clare Burnett
6 Min
View All >
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
Billbergia Legacy HDA
Residential

Two 60-Storey MacPark Towers Fast-Tracked

Clare Burnett
Broadbeach 38-40 Australia Avenue DA Approval render hero
Development

Tripling Down on Gold Coast Tower Plans Pays Dividends

Phil Bartsch
The upscaled Broadbeach proposal has been given the green light with an uplift in the development yield from 31 to 96 ap…
LATEST
Traders in purple Northsea Wollongong EDM
Exclusive

Affordable Housing Bonus Drives Mixed-Tenure Momentum

Clare Burnett
6 Min
Billbergia Legacy HDA
Residential

Two 60-Storey MacPark Towers Fast-Tracked

Clare Burnett
3 Min
Broadbeach 38-40 Australia Avenue DA Approval render hero
Development

Tripling Down on Gold Coast Tower Plans Pays Dividends

Phil Bartsch
2 Min
Kincrest The Osment Prahran HERO
Development

Kincrest Breaks Ground on its $100m Prahran Luxury Project

Leon Della Bosca
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/silverstone-developments-sells-healthcare-asset-for-26m