Long-term lease at Rotorua aged care facility

The land and buildings of an aged care facility in Rotorua are being presented to the market for sale and offer buyers the opportunity to acquire an asset with a steady rental stream and land that is available for future development.

32 Taui Street, Ngongotaha sits on the Rotorua lakefront of Parawai Bay and has 13 separate living units providing rest home, hospital, and dementia levels of care to a maximum of 81 residents.

There are associated administration and facilities areas located at the entrance to the complex.

The total landholding of the property spans 13,355sq m and approximately 3,000sq m is available for development or subdivision meaning the operations of the facility could potentially be expanded in the future.

Known as The CARE Village, it was purpose-built in 2017. The tenant, Rotorua Continuing Care Trust, is an established operator in this field and have created an innovative ‘village’ environment for the residents.

The tenant has a long-term view for the property and their current 12-year lease runs until 2029 with two further rights of renewal in place for six years each.

The total annual rental income from the property is $810,397 plus GST.

Colliers Brokers Simon Clark and Mark Rendell have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 9 May, unless sold prior.

Resident accommodation is designed as a modern way of care by offering secure village living, as inspired by the De Hogeweyk Village in Holland.

Accommodation is divided into 13 living houses, each with its own kitchen, lounge, laundry and communal bathroom and toilets.

Ten of the houses have six bedrooms, while the balance have seven bedrooms.

Clark, Managing Director of Colliers Tauranga, says the opportunity to secure a property with a lengthy lease to a highly respected operator will be appealing to prospective purchasers.

“Comprising immaculate, thoughtfully designed, easy-care buildings and grounds, this unique investment will attract a wide range of investors who see the growing demand for these types of facilities and the future potential for capital growth in this sector,” Clark says.

“Aside from the length of the lease, there are CPI rent reviews every two years and future market rent reviews on renewal, providing built-in rental growth.”

The balance of the site not covered by improvements is mostly laid in areas of lawn and gardens planted with trees and shrubs.

The site is secured with perimeter fencing. The car parking area is provided with 46 marked spaces.

Rendell, Commercial and Industrial Sales Broker at Colliers Rotorua, says the location of the property is appealing for its residents.

“Sitting on the lakefront of the village of Ngongotaha, the subject property is only 10km west of Rotorua and offers easy access to State Highway 5 leading to Hamilton and Auckland. Tauranga and Mount Manganui can be reached via State Highway 36,” Rendell says.

“The site is elevated above Lake Rotorua’s 100-year flood level and offers expansive views of the lake as well as the neighbouring hills and countryside.

"The property is surrounded by more commercial users in the adjoining streets and is within walking distance of the local Ngongotaha shops.

“This investment opportunity offers buyers a consistent rental stream as well as future development potential.”

- Supplied by Colliers