Business Sold Sydney NSW Region, New South Wales
Business Category Medical
Non Dws Clinic In A Shopping Centre Next To A Chemist & Opp A Pharmacy In Sydney's West
The practice principle has been at this practice for 17 yrs so is somewhat of an institution in the shopping centre. The clinic is 42 yrs old itself and the shopping complex is about 50 yrs old. He is happy to stay on post settlement for a 6 month transition with the new owners on the current roster and is happy to do every Sunday (as it is always very busy) and perhaps one additional day for up to 5 years. After that, he is happy to continue at the practice on reduced hours for 5 years, in order to maintain his registration with AHPRA, as although he is mid 70's, he is not yet ready to retire. The minimum required hours to do this is about 107 hours per year which is equal to about 1x Sunday 3-hr session per week. There is another GP at the clinic to enable it to open 7 days a week and that person does 2x half days. In addition, there are allied health and VMO's that visit and pay rent to the practice owner, including an orthopaedic surgeon and a psychologist.
The practice principles hours are 9-12pm + 2-5.30pm Mon/Wed/Fri, with alternative Sat from 9-2pm, plus Sun from 8.30-11.30am, which is 26.5 hrs per week. The other GP works Tues and Thurs from 9-2pm and alternating Saturdays being 15 hrs so total opening hours are 41.5 hrs. A new owner would be able to extend the opening hours if they were a practicing GP and opening later. Alternatively, they might be able to recruit a DWS restricted GP to cover additional after-hours shifts in alignment with the shopping centre opening hours.
In the shopping centre, there is a large Woolworths (with a lease til 2040), and about 12 other smaller retail outlets, as well as a large chemist (with a lease til 2030) and the MC. The chemist is busy and does about 400 scripts daily. There is only a corridor between the chemist and the MC, which are both opposite the Woolworths entrance so plenty of pedestrian traffic past the front door. The MC is about 90 m2, and can be extended into the cafe area next door which is currently closed and will remain vacant for the 6 months that the practice is on the market in case a buyer wishes to expand the practice and make use of this adjoining space. The cafe space is about 73m2 so there is the potential to create a MC of about 163m2 for a new owner. Currently the lease (which is current til Aug 2021) for the MC is only $58,500 pa in this shopping centre (incl GST + on-costs) with about 300 car parks, and the cafe is paying about $50K so a newer, bigger MC could pay $100K pa in rent with a possibility of a price reduction by renegotiation with the landlord. In addition, there are options for a 7 year lease, with the first 4 being secure, after that there might be an enforced move to another location within the shopping centre as the centre managers need to create a wheelchair accessible toilet; however, nothing is confirmed at this stage. There is another option being to sublease some space from the neighbouring pharmacist which would give another 5 year option to the MC owner. The pharmacy has a 12 year lease and can't be moved, so this is a great alternative if the new buyer is concerned about this. The pharmacist is ready to put this offer in writing for the new owner.
There are 3x CR's, with one currently being used as a Tx room, and reception area in this bulk billing clinic. The owner is looking to take a break in Jan 2019 so potentially a GP could do a locum for the month with a view to buying if they were interested in this location. There are about 250 patients at this practice each week which could be increased with a lady doctor onsite. Previously, they were seeing about 17,500 patients pa with a lady dr onsite, now they are seeing approximately 13,500 pts pa. The price is negotiable, and the owner is looking for $180K, depending on the transition that is negotiated.
The owner was an examiner with the College so could have a registrar (P/T or F/T) join the practice under his supervision as the clinic is accredited til 2020 with AGPAL. He just needs to complete the GP Synergy requirements to become accredited again as a examiner of the college. The other GP that works there is also an examiner with teh college so they could be the primary and secondary supervisors. It is envisaged that in 2019, when there is another GP on-site, that they will be able to invite pathology onsite to assist with their patients via a nurse onsite (who the MC would pay for) and pay around $30K pa in rent to be there for the collections. There are 2x lady receptionists that share the F/T role. One of the ladies is 71 yrs old (6 sessions) and will probably retire at settlement. The other lady (6 shifts) is the partner of the practice owner and will stay for the 6/12 transition if not longer. Any entitlements for these staff will be paid out at settlement so that their employment can be terminated and then they can be offered new contracts by the new buyers.
Should there be an interest in the local nursing homes by the new buyer, there is a large Polish facility with about 80 people living in independent aged care units 500 metres behind the shopping centre car park.
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Timestamp: XXXXXXXXXX 0139
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