Brand New clinic inside a shopping centre on the Northern Beaches….right on the water!

About this business for sale

With 2x pharmacies in this centre and a dentist, the MC is the only health provider in the shopping Centre providing air conditioned shopping to the suburb of 7,500 residents. With many elderly couples and young families moving into the suburb, this mixed billing practice (10-64 y/o will be privately billed for appointments) opened its door in Aug 2017. With a 3 month rental holiday, the current owners have taken this business from nil to 30 patients a day, using 2x GP’s (one f/t and one p/t) to cover the Mon to Fri business hours only shifts. There are 1400 car parks in the complex for patient use as well as 105 specialty shops for visitors to the centre plus Woolworths, Coles and Aldi….so loads of pedestrian traffic past the front door of this clinic every day. Due to the high patient demand, there are usually about 15 pts on the waiting/cancellation list daily. The UK Dr finished in Oct 2019 and from then, it is only 1x GP til the next Dr starts in Jan 2019.

As well as the entire range of standard GP services, Warriewood Family Healthcare provides services in Gynaecology, Family Health, Maternity Care, Vaccinations and many other services. The sale is effectively an asset sale and the current price of $129K will go up in 2019 if the business doesn’t sell this year as there will be additional practitioners joining the team.

There is a 10 year lease here, with only 14 months of the lease used. The rent is $10K per month or $120K pa, whilst Laverty pathology pays $2,800 per month or $33,600 pa; which is just over a 1/4 of the lease requirement. Real rental costs then become $86,400 or $7,200 per month or $166 per session. Non-medicare card holders pay $50 for a standard consultation or $75 for a long consultation, so rent is covered by seeing one non-medicare patient every hour! There is the possibility that the new buyer will be able to renegotiate the lease with the landlord however, lease assignment is envisaged as opposed to a new lease.

Opening times:

Monday:9am – 5pm
Tuesday:9am – 5pm
Wednesday:9am – 5pm
Thursday:9am – 5pm
Friday:9am – 5pm

The shopping centre is open 7 days a week so with more GP’s, there is the option to open later and across the weekend. The current owner is selling due to his children’s education requirements and drive times across the city now making the drive to the Northern Beaches too difficult. His intention is to remain there until the new owner takes over or the new GP starts, which is the 7th Jan 2019. There re 2x OTD’s undertaking their PESCI requirements currently with a view to starting in March 2019 at the latest. They will be able to work in the after hours and over the weekends. The generally registered GP that is joining in Jan will be able to share the supervision requirements of these new drs.

With 4x consulting rooms and a treatment room that could become another CR, there is plenty of scope to grow this business, by adding additional GPs and/or allied health plus increasing the opening hours. The supermarkets open from 7am to 10pm 7x days a week so there is the option to almost double the opening hours if the clinic can be staffed and pt demand is there.

The fit-out cost $190K and the owner is looking to sell for $129K in order to get a quick sale and reduce his travel times, preferably with settlement before Xmas. Site visits can be arranged during business hours for a walk through whilst the GP is there Mon to Fri. Appointments after opening hours will be as mutually agreed.

There is an RN supporting the clinicians presently only 2 days a week, however, as the practice grows, she is happy to work there more days. She is an injecting nurse and is employed on a casual basis so is not attracting any entitlements. There are 2x casual reception staff that comprise 1x FTE.

Please contact us for further information & photos.

Date: December 4, 2018
Category: Practice Sales