The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
LESS THAN 30 DAYS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
4 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 29-31 JULY, GOLD COAST
SECURE YOUR SPOTDETAILS
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
Exclusive

Tapping the Bunnings ‘Halo Effect’

Taryn Paris
5 Min
Exclusive

‘Construction Not a Scale Game’: Hutchinson

Phil Bartsch
9 Min
Nation's build-to-rent project Charlie Parker in Sydney's Parramatta where more projects are being located and built outside the CBD.
Exclusive

Foreign Capital Still Dominates BtR but Things are Changing

Marisa Wikramanayake
7 Min
Exclusive

Fortis Reveals Plans for Coveted Bowen Terrace Site

Taryn Paris
4 Min
Exclusive

Accor Deputy Delivers Verdict on Brisbane Games Hotel Shortfall

Phil Bartsch
6 Min
View All >
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
Markets

Private Credit’s Biggest Risk in Expansion: Sameer Chopra

Taryn Paris
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
The Melbourne riverfront scheme has won funding for its next three stages—but the State must come to the party...
LATEST
Residential

Consolidated Reveals Next Riverfront Play in $64m Deal

Leon Della Bosca AND Taryn Paris
3 Min
Markets

Private Credit’s Biggest Risk in Expansion: Sameer Chopra

Taryn Paris
2 Min
The City of Melbourne has opted to keep Greenline in the 2025-26 Budget.
Policy

Melbourne Budget Puts Paid to Greenline Future Fears

Marisa Wikramanayake
4 Min
Wynnum Masterplan hero
Development

Masterplan Revealed for Brisbane Bayside Super-Site

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