This post originally appeared in Australian Property Journal.
RAM has offloaded a of a 4,454 sqm site leased to radiology provider Qscan in Redcliffe to Allamanni Development for $10.4 million.
The above book value sale of the property at 6 Silvyn Street, around 28km north of the Brisbane CBD, adjacent to Redcliffe Hospital offered the new owners recognises the opportunity to develop a medical and rehabilitation centre on the site.
“This was a good result for the RAM platform and our investment partners through another successful de-risking pathway. This is allowing us to significantly outperform passive strategies over this market cycle,” said Matthew Strotton, executive director and head of real estate at RAM.
“The sale of the Redcliffe asset above book value underscores RAM’s strategic expertise in healthcare asset management and value creation.”
Originating the opportunity off-market through a separately managed account, RAM has since conducted extensive analysis, implemented strategic de-risking measures, and successfully secured a development approval on underutilised land to deliver an uplift in asset value.
Nick Wedge and Chris O’Driscoll from Colliers transacted the deal on behalf of RAM, who purchased the asset in July 2020 for $8.3 million and has transacted it for $10.4 million, representing a 25.3% increase in less than 4 years.
“The off-market sale saw a great result for both the seller and the purchaser in a strongly performing sector,” said O’Driscoll, national director or healthcare and retirement living at Colliers. “The involvement of active institutional investors in a low interest rate environment has resulted in medical and healthcare facilities in Queensland achieving record breaking sales in past years,
including major portfolio transactions, with total sales volume reaching nearly $479 million in 2022 and $500 million in 2021.”