A unique chance to buy a world class equine hospital has emerged, with its enormous potential development upside likely to woo investors.
The Goulburn Valley Equine Hospital at Shepparton in Victoria’s regional north has hit the market, backed by a lease to the University of Melbourne and a critical role within the state’s horse industry.
The 34-hectare property at 905B Goulburn Valley Highway has been home to the hospital, its reproduction centre and international quarantine facility since 2017 and sits within the state’s most populous equine region.
Featuring more than 3800sqm of buildings and with further improvements including high-grade steel fencing, the property is expected to generate wide-ranging interest through its expressions of interest campaign, which is being managed by commercial agency Burgess Rawson.
Burgess Rawson director Shaun Venables said investment opportunities such as this were exceptionally rare.
“We’ve sold a lot of medical centres, veterinary clinics, government leased educational type properties in the past, but this one is largely unique and very exciting,” Mr Venables said.
“What has been built over time on this site is more than 3800sqm of buildings and very high quality steel fencing throughout the entire property to keep some very expensive horses separated.
“The infrastructure that is there makes the anticipated price well below replacement cost.”
The hospital is secured on a six-year lease to June 2023, with an additional six-year option to 2029.
It currently returns a net annual income of $210,320 plus GST.
While a lack of comparative sales makes estimating a potential price difficult, agents expect it to sell in the low $3 million range, which would represent an initial yield of around 6.75%.
Mr Venables said the property’s immediate future remained as a veterinary facility, but that its future development potential could not be overlooked and may prove very attractive to some investors.
“The university has plans to expand its operation on the site, and that would present a major opportunity for the owner to strengthen the lease and give everyone more certainty moving forward beyond 2029,” he said.
“The land falls just outside the Shepparton 2050 plan, so it’s very, very close to land that is going to be rezoned to residential. While this property is not within that zone, an astute buyer might look to lobby council at some point moving forward.
“I think the future of this site is going to be its current use for some time, but it’s nice to know in the back of your mind that you’re on the cusp of a lucrative rezone at some point.”
The property will be sold through expressions of interest, which close at 4pm AEDT on Wednesday, March 10.