The land and buildings occupied by a medical centre in Tauranga are to be auctioned next month.
3 Palm Springs Boulevard is home to Papamoa Pines Medical Centre, Palm Springs Pharmacy, Papatoetoe Family Dentist and Waiapu Anglican Social Service Trust Board.
It was built in 2005 for its current owners, a Bay of Plenty family trust, and has a sound leasing history.
The family trust is heading in new directions and is selling the property to realign its assets.
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Marketed by Bayleys sales agents Lloyd Davidson and Rory Brown, the property will be auctioned on September 9, unless sold prior.
Davidson said the residential growth being seen in Papamoa and the increasing demand on medical services in the area, underpins the credentials of the property which occupies a 2,174sqm residentially-zoned site, with medical use consent.
“This is a busy health hub and clearly fulfils a necessary role in the provision of community health services in the Papamoa catchment,” said Davidson, adding that there is nothing else comparable on the market in Papamoa currently.
“As an asset class, medical-related property is seen as defensive and in the current pandemic climate when a concerted health response has been required and expected, its appeal as an investment proposition has been elevated even further.
“Added to this is the current high level of investor confidence in the wider Bay of Plenty and a corresponding shortage of available opportunities in the low interest rate environment that seems to be holding.”
The Palm Springs Boulevard property returns $145,479.20 net per annum with the tenant businesses on varying lease terms. Across the property, the weighted average lease term is just over four years and it represents a desirable split-risk investment proposition for an investor.
There are 32 onsite car parks and an ambulance bay to the rear of the site. The doctors’ practice occupies 268.08sqm, the pharmacy 117.2sqm, dentist practice 96.64sqm and the Waiapu Trust Board, 114.5sqm. There is a small 50sqm vacant tenancy within the complex.
“This would be suitable for a physiotherapist, skin specialist, podiatrist or similar business that could leverage off the existing general practice, pharmacy and dental businesses in a one-stop-shop sense,” said Davidson.
Thinking further ahead, Davidson said the property was well-positioned to take advantage of the significant residential growth and change happening in Papamoa and it is feasible that in time, the land could revert to its underlying residential zoning.
“Development in the Tauranga area is expected to continue to move eastwards and Papamoa is proving enduringly popular for its lifestyle benefits and proximity to Tauranga city,” he said.
“Papamoa is now Tauranga’s largest suburb.
“The demand for existing residential housing stock and the ready uptake of newly-released sections in Papamoa shows that the appeal of this seaside suburb is not abating and that should give confidence to an investor considering this large, flat site with dual access.”
