Sonic Tests Market with Bowen Hills Lab Leaseback Offer
What is expected to be one of Australia’s biggest life science deals is in motion.
Sonic Healthcare is preparing to sell and lease back its Sullivan Nicolaides Pathology laboratory headquarters in Brisbane, one of the most advanced facilities of its kind in the southern hemisphere.
The ASX-listed group is the world’s third-largest pathology provider, with operations spanning Australasia, Europe and North America across laboratory medicine, radiology and primary care services.
CBRE has been appointed to manage a global expressions-of-interest campaign for the Bowen Hills property, which has an estimated worth in the vicinity of $500 million.
The 24 Markwell Street asset will be offered with a 20-year triple net lease and an initial annual rental income of about $25 million.
Sonic Healthcare chief financial officer Chris Wilks said the Bowen Hills laboratory is one of the most technically advanced laboratories in Australia.
“It is central to the critical diagnostic work performed by Sullivan Nicolaides Pathology every day,” he said.
Wilks said the sale and leaseback of the property was “part of our broader capital management strategy”.
The 43,500sq m complex comprises laboratories across multiple storeys and underwent its most recent expansion in 2024.
The purpose-built facility is near public transport links, the Brisbane CBD and surrounding hospitals.
It is the central pathology testing hub for a network that receives daily samples from more than 450 collection centres and over 20 laboratories across Queensland, northern New South Wales and the Northern Territory.
CBRE senior managing director Bruce Baker said investor appetite for healthcare property had been accelerating amid forecasts that Australia’s healthcare and life sciences property sector could more than double in value by 2028 to $12.1 billion.
“As the most significant Australian asset of its kind to be offered to market, we expect the Sonic Healthcare facility to attract global capital seeking healthcare, infrastructure or long WALE investment opportunities,” he said.
“This interest will be underpinned by the 20-year triple net lease, the strength of the tenancy covenant and the facility’s high forecast replacement cost.”
Expressions of interest are due to close on March 26.
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