Bendigo healthcare workers residential village hits the market

The regional Victoria commercial property market is going from strength to strength as investors and businesses operators turn to the regions for value and better returns.

Bendigo has been attracting investors attention as the broader Bendigo population surpasses 140,000 bringing with it a stable workforce, and a larger consumer base.

It’s also a market where traffic congestion, parking and density constraints don’t have an adverse impact like in the city.

Colliers have recently listed another exceptional investment opportunity at 10 Atkins Street, North Bendigo that offers a secure long term tenant and a modern up to date facility.

This purpose-built residential healthcare complex has specifically been designed to house essential workers from Bendigo Hospital, the largest regional hospital in Victoria, with Bendigo Health employing over 5,000 staff.

The property comprises 120 well-maintained apartments, fully leased to Bendigo Health Care Group until March 2044, ensuring a secure lease term of 19.46 years.

As a state government entity, Bendigo Health Care Group manages the primary public sector functions of Bendigo Hospital, providing the asset with a robust AA-rated State Government covenant and a stabilised Triple Net long-term income stream.

The complex features eleven three-storey buildings, thoughtfully designed to offer a well-distributed and accessible layout that maximises each apartment’s outlook and natural light.

Colliers director of capital markets Thomas Blencowe said 10 Atkins Street was a unique asset that offers a significant advantage to Bendigo Hospital.

“This property is considered an enormous comparative advantage in attracting essential healthcare workers, a benefit that competing public hospitals do not have the infrastructure for,.

“With a guaranteed 20-year cash flow and pricing expected to be below replacement cost, this asset presents a highly attractive investment opportunity.

“The 7,971sqm freehold site is surrounded by sporting grounds and Crown public open space, providing a great outlook.

“For the astute buyer, there is potential to expand the current highly sought-after use by acquiring and developing the adjacent land subject to council approval.

He said this was a compelling investment opportunity, one that has an Indexed Government Bond-like security, with exposure to the most sought-after real estate sectors – Australian residential and healthcare – in one of Victoria’s fastest growing regional cities.

With the Healthcare and Retirement Living sector poised for growth fuelled by strong investment fundamentals, and Australia’s growing and ageing population seeking a range of alternative living options, Colliers says the market is experiencing unprecedented demand for healthcare.

“This is largely driven by population demographics and the non-discretionary nature of the sector,” Mr Blencowe said.

“This demand is driving investor, developer, and owner-occupier appetite for assets.”

Colliers managing director for Ballarat, Geelong, and Bendigo, Travis Hurst said Bendigo, Victoria’s third-largest key regional hub, continued to attract strong residential demand due to its appealing lifestyle, affordability compared to Melbourne, and well-developed infrastructure and strong regional economy.

“The city’s diverse community includes a mix of first-time homebuyers, families, and retirees, all drawn to the area for its balance of urban amenities and relaxed lifestyle options.”

10 Atkins Street, North Bendigo, is being offered for sale by International Expressions of Interest, closing Friday, November 1, at 2pm.