The Department of Health and Human Services (DHHS) has sold a 4607 sq m block of land at 1-9 Allen Street in Oakleigh, Melbourne to a local developer for $9.12 million in an off-market sale. Savills’ Julian Heatherich, Nick Peden and Mark Stafford brokered the deal.

A syndicate has snapped up aged care provider Benetas’ head office in East Hawthorn, paying $24.65 million on a 5.5 per cent yield. The deal, struck at a value above expectations, shows the strength of Melbourne’s suburban office market where yields have already compressed 75 points in the past year. The two-storey 4000 square metre building at 785-789 Toorak Road is 94 per cent leased to seven tenants with a slender two-year average lease term. Colliers International agent Peter Bremner, who negotiated the deal with JLL agents Josh Tebb and Marcus Quinn, said the suburban office market is “very very strong”. “We can’t get enough stock. Anything we get sells,” Mr Bremner said. The buyer, a local syndicate, has plans to reposition the slightly underlet building which is close to the Monash Freeway and Tooronga Shopping Centre. Rents have been rising in the inner eastern market and incentives falling as tenants are priced out of the fringe office precincts. Contracts were exchanged within a week of the expressions of interest campaign closing, he said. Eight strong offers were made for the building, mostly by local buyers, Mr Tebb said.

Well-lease medical centres are attracting investors. An owner-occupied coroner property at 374-378 Nepean Highway sold for $5.6 million on a yield of 3.2 per cent. The property leased to two national medical providers, Psoriasis Eczema Clinic Australia and CPAP Australia, CBRE’s Josh Twelfree, Scott Orchard, Sandro Peluso and Kinson Wong said.

A near-new office building leased to RMIT and the Royal District Nursing Service within developer MAB Corporation’s University Hill development in Melbourne’s north is on the market and expected to sell for circa $25 million. Andrew Dawkins, Chris Jones and Walter Occhiuto of Dawkins Occhiuto, and Tim Grant and Tom Ryan of Knight Frank are the selling agents.

Property NSW, on behalf of Family and Community Services, is selling a row of two-storey federation-style apartment blocks as part of the Millers Point sales program in Sydney’s The Rocks. 15-35 Dalgety Road are a mix of two and three-bedroom apartments. McGrath will handle the expressions of interest sale. Proceeds will fund new social housing dwellings.

Myamba Super has signed up homelessness and housing support service VincentCare Victoria for a sublease of the 2,029 sq m office building at 17-19 Lieber Grover, Carrum Downs, in Melbourne for two years. The net annual rent for the property is $70.65 per sq m, with no incentives. Colliers International’s Gordon Code negotiated the tenancy.

Medical supplies company Able Living group has agreed terms on a 1100 sq mm refurbished warehouse at 65-67 Sheehans Road, Heidelberg West in Melbourne to accommodate its expansion. Allard Shelton’s James Wagner brokered the deal at a net annual rent of $82,500 over four years.

Medical properties also proved popular in Western Australia after Lot 55, Marquis Street, Hammond Park sold to a private investor for $5.27 million on a 6.6. per cent yield. The new two-storey building is leased to a pharmacy dentist and a Medical Centre. Hammond Park is 24 kilometres south of the Perth CBD. Vend property’s Jeff Klopper handled the deal.