Healthcare centre a ‘shot on the arm’ for commercial property investors
The land and buildings housing the only full-service medical centre in the Waikato township of Paeroa has been placed on the market for sale - offering potential new owners a purpose-built complex with a suite of established healthcare tenants.
As the only full-service medical centre in the town - encompassing a doctors’ surgery, dentistry rooms, pharmacy laboratory, community and mental health services - the complex services the local and wider North Waikato community.
Paeroa Medical centre is centrally located at 15 Princess Street, one block back from the CBD and has a 2015 rating valuation of $1.36 million.
The building is within easy walking access to the township and close to the river.
The building and land have been placed on the market for sale by auction on March 9 through Bayleys Hamilton. Salesperson Josh Smith and Andy Shaw said the 610sqm medical centre complex was built on a 1211sqm section, and generated an annual net rental income of $115,341 from six tenants.
Tenants within the building include, Paeroa Medical Group, Pimenov Dentist, Pathlab Waikato, Paeroa Pharmacy, Waikato District Health Board (WDHB) Mental Health and WDHB Community Health.
· Anchor tenant Paeroa Medical Group has a five-year lease running through until 2020, with two three-year rights of renewal.
· Paeroa Pharmacy has a five-year lease running through until 2020, with two three-year rights of renewal.
· Pathlab Waikato has a four-year lease running through until 2019, with two three-year rights of renewal.
· Pimenov Dentist has a two-year lease running through until later this year, with three three-year rights of renewal.
· Waikato District Health Board has a two-year lease running through until later this year, with three three-year rights of renewal.
· The current owner of the property has a three-year lease on a small part of the premises running through until 2020.
Mr Smith said the property’s situation and tenants made it an attractive opportunity for a potential investment-focused buyer. All tenants were on bi-annual rent reviews.
“Centrally located, the medical centre is only a few hundred metres from Paeroa’s town centre. It is easily accessible for service users, with a carpark behind the building for eight vehicles and parking on the street. Paeroa is centrally located between three major centres - Tauranga Hamilton and Auckland,” he said.
“Furthermore, as one of the only medical centres in the town, the healthcare services provided within the building offer an essential service to the region.
“This is a thriving medical hub, well positioned in a town currently experiencing strong investment and growth.”
“The businesses across the tenants ensure compatibility within the centre - providing a full-service offering to users, all available in a ‘one-stop’ onsite location.
“The six leases deliver a broad risk profile and provide a diversified income source for any potential new owner looking at the building for investment returns,” said Mr Smith.
Mr Shaw said the brick building was constructed more than 20 years ago to a high standard, and had an A+ seismic rating. Since then, the building it had been well maintained and continually modernised. A full upgrade of the pharmacy was completed last year.
The centre features multiple consultation rooms, a tea room, reception area and clinical rooms, and is zoned commercial 8A.
“Given the building was constructed more than two decades ago, and its seismic rating is 100 percent of New Building Standards, this demonstrates how well it has been constructed and maintained. It’s unusual for a building of this age to have this level of rating,” said Mr Shaw.
“This is a reputable medical centre with an established clientele. The healthcare facilities service the wider community and the businesses have been developed to be user friendly, with systems in place to ensure the premises are well maintained and operating well.”