Medical Practice For Sale or Lease in West Pennant Hills, Sydney
Est GP business w/ owners remaining in NW Sydney in Iconic, heritage listed practiceMedical Practice | Posted
Heritage listed practice with 2x CRs and a nurse room, split level, with the waiting room and CR's on the ground floor and some storage/PM room upstairs.
The GPs are looking to sell the business and transition gradually to retirement. There are 6 car parks on the block of land with 3 more at the front. 2.2 FTE GP's are currently working at the practice including 2x owners each doing 4 days and another 2x P/T lady GPs. One of the P/T drs comes all the way from Wollongong to work (1.5 hrs drive each way) and she would probably not transition with a new owner as she is only doing a few sessions a week. This would give the new owner sessions to see patients, plus additional sessions from each of the owners as they too are looking to reduce their hours. Their goal is to continue working in the practice for the new owner doing 2-4 sessions per week for up to 3 years post settlement. Both of the ladies are looking to retire at 65 and have about 3 years left to work. None of the GPs are on contracts so a new negotiation would have to be reached if the new buyer wanted them to stay on.
For the right money the freehold is also available however, it is primarily the business that the owners are looking to sell so that they can start planning their transition to retirement in another 3 years time. Currently the rent is $6K per month and if the freehold wasn't sold, then a new lease would be created at the rate of 5.5% of the freehold valuation which would be $105,500 pa + GST + on-costs.
This is a mixed billing GP practice with BB used only for aged pensioners over 80 yrs of age, Veterans, and children under 5 yrs of age; all other pts are privately billed. The fees currently are $70 for a standard consult up to 20 mins and $140 for a longer consult from 21 to 39 mins. If the pt is there for a follow-up visit, they may charge a reduced fee of $60.
In addition to seeing pts from 8.30am to 6pm Mon to Fri and Sat from 8.30am to midday, there are 120 additional patients in an aged care facility that are serviced regularly. On Wednesdays, one of the owners will go to the residence and see up to 25 pts in a high care hostel and and up to 30 pts in the supported care facility. This income also goes to the clinic but may not be something that the new buyer might wish to continue into the future. There are additional aged care facilities in the area should this be an area that the new buyer wishes to expand. In addition, the practice can be grown through full utilization of the CR's as there are 3x sessions that are not covered during the week, in addition to offering extended hours pre + post business hours and on the weekends too.
Accreditation is taking place currently with the audit date set for 13th Dec 2018 so the new buyers will not have to undertake this for another 3 years once this is granted. This practice hasn't been taking on new patients for years and years as they have massive pt demand and need to manage this accordingly. Additional billings could certainly be added with additional F/T GPs working there and/or working later nights or more time over the weekend, or servicing more aged care residences depending on what the buyers wanted to do with the business. It would be difficult to grow the practice physically due to the heritage listing in the practice, Whilst the space it there, the council might not allow anything significant.
Upstairs is a room that is a PM room, with boxes and boxes of old pt files which need to be kept but the current owners can't see value in scanning. The facility was a 4 bedroom home and is quite lovely internally. The stair case is quite narrow and it would be difficult and costly to get a lift installed here. Nearby to a newly proposed train station in Cherrybrook, this precinct is set to be further developed with 500 Mirvac units proposed in this medium density zoning location.
The freehold was valued recently and can be purchased at $2.4M as a part of the transaction but is not a requirement of the business sale.
|Type of Offer||For Sale or Lease|
|Location||West Pennant Hills, NSW|
|Remote Classification||MM 1 - Major City|
|No. of Practitioners||2 FTE|
|No. of Staff||4 FTE|
|No. of Rooms||3|
|Floor Area||150 m2|
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