Well Health Care commits to 20-year lease on outer Melbourne aged care home

Victorian disability and home care provider Well Health Care has committed to a 20-year lease on a new aged care facility in Melbourne’s Springvale South, 24km southeast of Melbourne’s CBD, CBRE has reported.

CBRE agents Jimmy Tat, Sandro Peluso and Marcello Caspani-Muto, negotiated the lease at an initial rent of approximately $350,000 a year, representing around $8,400 per bed, with 3.5% annual increases.

The building, located at 472-476 Springvale Road, Springvale South, was sold last year by Mercy Health for $6.05 million. The home ceased operation in 2021.

Since then, CBRE’s Australian Healthcare & Social Infrastructure team has advised the new owners on a significant refurbishment to capitalise on the site’s location in Melbourne’s growing Springvale precinct.

Jimmy said the site had appealed to a wide variety of operators given the area’s favourable demographics and the lack of affordable, senior living accommodation. The building may be the only ‘ready for immediate use’ aged care building on the market, he said.

“As construction costs and land prices continue to increase due to economic constraints, tenants are seeing added value in opportunities where existing facilities are available for immediate use,” he said.

Well Health Care did not respond to our attempts to contact them.