The award-winning medical facility housing the South Island’s biggest skin cancer clinic and a leading plastic surgeon has gone up for sale in Christchurch’s health precinct.
The more than 1,200-square metre, modern two-storey facility known as Avenue Health sits prominently on Bealey Avenue, amid a concentration of specialist health providers in the central city.
The property is fully leased to KM Surgical Limited and Plastic Surgery Associates, with a weighted average lease term of over 8.5 years. It generates a total net rental return of $653,140 plus outgoings and GST per annum.
KM Surgical is a specialist medical and surgical provider affiliated with Southern Cross and the NZ Dermatological Society. It specialises in procedures such as liposuction, fat transfer, laser skin treatments, eyelid and facelift surgery.
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With a team of highly trained dermatologists undertaking skin and mole checks and skin cancer treatment and surgery, KM Surgical is the largest facility specialising in skin cancer in the South Island.
KM Surgical pays annual net rent of $525,000 plus outgoings and GST for its approximately 861-square metre premises with 25 car parks. The current lease runs through to 2031, with two further seven-year rights of renewal and built-in annual rental growth of 2 percent.
Plastic Surgery Associates covers a wide range of conditions and procedures, with a specialist interest in complex reconstructive surgery of the hand, head and neck.
It offers plastic surgical consultation and treatments in areas including skin cancer and melanoma, hand surgery, reconstructive surgery for scars, burns and wounds, and corrective surgery for ears, eyelids and abdomen.
Plastic Surgery Associates’ approximately 382-square metre facility with 11 car parks generates a net rental return of $128,140 plus outgoings and GST per annum, on a lease that extends to 2028 with a further seven-year right of renewal.
The freehold medical facility at 198-202 Bealey Avenue, Christchurch, is being marketed for sale by Mike Houlker, Cameron Melhuish, Sunil Bhana, William Wallace and Ryan Kerr of Bayleys Real Estate.
Sale is by way of a tender closing on Thursday 24 November, unless the property is sold prior.
Houlker said the approximately 1,243-square metre standalone facility sat on some 2,381 square metres of land with 36 car parks.
“Officially opened in 2016, Avenue Health was architecturally designed and built to high specifications with an Initial Evaluation Procedure seismic rating of 100 percent of new building standard. It was a gold award winner in the New Zealand Commercial Project Awards in 2017,” said Houlker.
Melhuish said the two tenancies were made up of a mix of reception areas, offices, clinical spaces, theatres and pre and post-operation recovery areas, along with decontamination and sterile facilities.
“The ground floor and part of level one are occupied by KM Surgical, with the balance of level one being home to Plastic Surgery Associates,” he said.
Bhana said Avenue Health boasted a prime position in central Christchurch’s health precinct.
“This places the facility in the midst of other key medical providers such as Southern Cross Hospital, Forte Health, Specialists at Nine, the Southern Endoscopy Centre and the After Hours Surgery.
“Not only is foot traffic high in the area due to its emergence as an essential destination for high quality health care, but access to this facility is also excellent,” said Bhana.
Wallace said the site contained plenty of off-street parking for staff and patients, with any overflow being easily accommodated in the nearby car parking buildings.
“A range of convenient public transport options are also nearby, including a bus stop just a minute’s walk away on Manchester Street,” he said.
Kerr said the site for sale formed part of Christchurch’s Residential City Centre Zone.
“There is an abundance of quality accommodation and dining options nearby which service the health precinct and many private residences in the area. Just a short walk from the CBD, many professionals have chosen to embrace the inner-city lifestyle that this area offers,” Kerr said.
- Article supplied by Bayleys
