The Ochre Medical Centre at 37–41 North Street, Dalby, has sold for $10.8 million at a 7.3 per cent yield through Stonebridge Property Group. The purpose-built centre is the only full-service private medical facility within an hour of the Western Downs town.
It is a strong example of why regional healthcare property has become a favourite with investors: essential services, long leases and solid returns.
The deal at a glance
- Asset: Ochre Medical Centre, 37–41 North Street, Dalby QLD
- Price: $10.8 million
- Yield: 7.3 per cent on net rent of $787,362
- Building: 10 years old, 1,676 sqm leased
- Site: 4,839 sqm with 195 metres of frontage and 70 car parks
- Tenants: six, including pathology, diagnostic imaging and a GP practice
- Anchor: Ochre Health, with five years remaining on its lease
- Agents: Stonebridge Property Group (Thomas Proberts, Tom Moreland, Harrison Coburn, James Fremantle)
Strong lease terms
Rents rise each year by CPI plus 1 per cent and tenants pay all outgoings, including land tax. That gives the new owner growing income with very few costs, which is what investors want from a healthcare asset.
A critical local service
The centre is about 200 metres from the Woolworths-anchored Dalby Shoppingworld and 1.5 kilometres from Dalby Hospital. For a regional community, a full-service medical centre is essential infrastructure, which supports long-term tenant demand. Stonebridge's Thomas Proberts said healthcare is one of regional Australia's most essential services and the depth of offers showed strong investor interest.
Dalby is on investors' radar
The Western Downs is attracting attention. About two months ago, Zerra applied to develop a $32 billion data centre campus 37 kilometres north-west of Dalby. A Hungry Jack's in central Dalby sold for $6.2 million at a 4.74 per cent yield three months ago and fund manager Deltine bought the Drovers Motor Inn in June.
Healthcare property keeps growing
Across Australia, private investors and funds are stepping into healthcare property as demand for services rises with an ageing population. Regional centres with multiple tenants and essential services are particularly sought after.
Regional yields versus city yields
Regional healthcare assets usually sell at higher yields than similar buildings in the capital cities, reflecting smaller populations and fewer buyers. For investors, that higher starting return can be very attractive when the tenants provide essential services and the leases include fixed annual increases.
The risk is concentrated in tenant quality and lease length. Here, a multi-tenant mix led by a national medical operator, with five years left on the anchor lease and CPI-plus reviews, helped give buyers confidence and produced a strong result.
What it means for the market
- Regional healthcare assets are delivering higher yields than city equivalents
- Multi-tenant centres reduce risk for investors
- Essential-service property holds up well through economic cycles
Lessons for owners and developers
- Tenant mix matters: pathology, imaging and GPs together create a one-stop destination
- Lease structure sells: fixed increases and net leases attract strong offers
- Show the community role: location maps and catchment data help investors understand the demand
What to watch next
Watch the Zerra data centre proposal and whether more healthcare and convenience assets in the Western Downs come to market.
