A Chinese investor has paid $4.8 million on a 6 percent yield for a fully leased dental clinic at Moorabbin, in a deal brokered by Savills Clinton Baxter and Julian Heatherich.

The single level, 402 South Road property comprises a fully refurbished building with a brand new state-of-the-art fit-out on a 647 square metre corner, Activity Centre zoned site, with frontages to both South Road and Redholme Street.

Mr Baxter said the property was sold with a ten year lease plus options to global healthcare group Bupa at a current net annual rental of $287,596 paid yearly in advance.

He said the long standing clinic had been operating for nearly 70 years over which time it had established a huge client base.

“The opportunity to secure a quality commercial building in one of Melbourne’s most prominent growth suburbs on a highly exposed corner site within a designated activity zone was very attractive to potential purchasers.

“The fact that the property was fully let to an international tenant on a long term lease and that the premises’ fit-out was state-of-the-art, made this a must consider for private investors and the result reflected that,” Mr Baxter said.

Mr Heatherich said demand for such investments was at an all-time high with the huge volume of investment sales over the last few years, resulting in a diminishing number of opportunities.

“Properties like this will always attract strong interest but when there is a general shortage of investment properties; well leased and well located properties are quickly snapped up and 402 South Road was no exception,” he said.

The vendor was a local private investor.

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