A four-block property, including a vacant residential aged care home, in Marrickville, 7km southwest of Sydney's CBD, has sold to Not For Profit provider Good Shepherd Australia and New Zealand, which supports women, girls and families, for $17.65 million.
The property, at 442, 444, and 448 Marrickville Rd is 4,660sqm, and zoned R1 General Residential, which allows medium density residential development.
Good Shepherd owns the adjoining property, and plans to move their head office into the heritage building at 448 Marrickville Rd, freeing up their existing property to increase yield, Shane Nicholson, Director Health, Aged Care and Retirement at selling agent Commercial Collective told The SOURCE.
Parties interested in the property, which included aged care providers, were deterred by the heritage listing, but the property was "hotly contested" at the top end price for build to rent and affordable housing providers.
The site is too small to build a residential aged care facility "of any significant scale", Shane said. "Sites that are 4,500 sqm or smaller will generally not be repurposed or demolished and rebuilt by providers as they cannot create modern single bed facilities of scale, so they will generally sell and recycle the capital back into their businesses."
Shane has now sold nine former aged care facilities, and has more on his books. Most homes are selling because the buildings are no longer fit for purpose, Shane said.
The vendor, Columbia Aged Care, now operates three aged care homes in Strathfield, Oberon, and Chatswood, and is looking to purchase a new facility or site to expand its presence in the aged care sector.
