As New Zealand’s healthcare system faces increasing pressure amid capacity constraints and high demand for services, an opportunity to invest in a private hospital in one of the country’s fastest-growing areas presents itself as a timely and strategic asset for investors, Bayleys salespeople say.
The Franklin Hospital, on 3,447sqm (more or less) of freehold land at 12 Glasgow Street, is a modern medical facility built in 2021, located in the critical growth centre of Pukekohe, servicing a large residential catchment from South Auckland and North Waikato.
Bayleys Auckland Metro Markets director Layne Harwood says the clinical asset offers an attractive investment proposition at a time when demand for health services is surging.
“With a long-term lease in place, this state-of-the-art medical facility provides both passive and strategic investors the chance to capitalise on an essential service that is both stabilised and positioned for future growth.
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“The private hospital features first-class building and equipment specifications, providing a broad range of services via operating rooms, general practice services, radiology, pharmacy, and urgent care. It is one of only three private facilities in the area, servicing a residential catchment of more than 80,000 people.
“The Franklin District has been a frontrunner in population growth, with projections showing a remarkable 77 percent increase by 2048. As the region’s sole urgent care facility, the Franklin Hospital is critical in addressing a significant healthcare need. This makes it a standout investment opportunity in the healthcare sector, offering long-term stability and substantial potential.”
Harwood is marketing the land and buildings of the Glasgow Street property for sale by tender closing at 4:00 pm on Wednesday, 16th October 2024, with Bayleys colleague Shane Snijder (unless sold prior).
The hospital spans 3,172sqm (more or less) over two levels, with access to 121 car parks and an additional 1,299sqm of proposed expansion planned for future development.
Bayleys South Auckland director Shane Snijder says that the hospital’s potential to scale further strengthens its investment potential.
“The current offering includes a 20-year lease to August 2041, generating an impressive rental income of circa $2,852,054 per annum.
“Favourable lease terms include built-in rental growth mechanisms, with reviews tied to the Consumer Price Index (CPI) plus one percent biennially and six-yearly market reviews.”
“The exceptional facility is partly owned and operated by a group of passionate doctors, whose personal guarantees provide an added layer of security for investors,” Snijder says.
Five subleases include Urgent Care, Pukekohe Family Doctors, Mercy Radiology, UniChem Pharmacy, and Salute Café and Eatery.
The ground floor, accessible via Glasgow Street, houses Mercy Radiology, UniChem Pharmacy, Urgent Care, and general practice, plus an ambulance bay and shared amenities.
Level one, serviced by dual lifts, contains three operating theatres, an endoscopy suite as a fourth theatre, 14 overnight suites with private bathrooms, day-stay facilities, administrative areas, kitchens, and various storage and plant rooms.
Harwood says that plans are available for a southern extension of the facility, which includes additional operating theatres and 14 new day beds. These will provide a developed area over three levels poised to increase overall capacity significantly.
“Significant barriers to entry for new health-related infrastructure in New Zealand include high regulatory hurdles, limited funding vehicles, and lengthy approval processes, making Franklin Hospital’s established presence and expansion potential a particularly valuable investment opportunity amid population growth.
“For investors looking to secure a foothold in the high-demand healthcare sector, the private hospital offers a future-proofed asset with long-term stability and the potential for significant capital growth. This sale is an opportunity to invest in a critical sector where healthcare services are more vital than ever.”
- Supplied by Bayleys
