Australia faces a growing structural shortfall of general practitioners, underpinning long‑term demand for medical services and the real estate within the sector. Healthcare based assets are demand‑driven by population growth and policy settings, not economic cycles, supporting stable occupancy and resilient rental income.
A significant portion of the workforce comprises high income earners, subject to policy settings that require service delivery within designated catchments. These regulations concentrate demand into specific locations and efficient structures materially reducing tenant mobility, vacancy and liquidity risk for well‑located medical assets.
Primary care revenues are closely linked to Government expenditure rather than discretionary consumer spending. This provides income stability that traditional office, retail, or mixed‑use assets cannot replicate, supporting consistent cash flow through economic cycles.
Medical properties below institutional price thresholds and above retail client thresholds remain predominantly privately held. Large REITs and unlisted funds typically mandate assets above $30M, creating reduced competition and enhanced acquisition opportunities for specialist managers operating in the above $8m to sub‑$20M segment.
Actively managed and valuations in DPA and regional catchments often trade at a premium to prime institutional assets. This creates a compelling entry yield, with value enhancement delivered through active leasing, WALE extension, tenant upgrades, and disciplined capital management rather than passive market appreciation.
Unlike residential property, commercial real estate remains unaffected by proposed changes to negative gearing and CGT concessions, preserving the tax‑deductibility of interest on investment debt. Investors may elect to receive regular income distributions or capitalise income within s holding entity of the fund, allowing returns to compound tax‑effectively depending on individual circumstances.
Investor: Jane, invests $500,000 in the Fund
Investment Term: 10 years
Target Distributions: 3% p.a.
Target Capital Growth: 4% p.a.
Indicative Gross IRR: 9%
Performance Projection:
Highlights:
Outcome: Jane benefits from predictable distributions, tax deductibility of debt related to equity investment, long-term capital appreciation, and access to a defensive, high-quality property portfolio with minimal personal involvement.
Learn more about the MPG Healthcare Property Fund and discover how you can access stable income, capital growth, and expert management.
Medico Property Group (MPG) provides wholesale investors with professionally structured access to high‑quality healthcare real estate, designed to enhance returns, manage risk, and simplify execution across the full investment lifecycle.
Our approach combines active asset management, disciplined capital structuring, and deep sector expertise, allowing investors to participate in a resilient property sector without the complexity of managing assets directly.
Key solutions include:
Partnering with MPG provides investors with strategic, disciplined access to healthcare property—managed actively, structured professionally, and aligned with long‑term capital preservation and growth.
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