A purpose-built medical clinic tenanted by one of New Zealand’s largest primary healthcare providers, differentiating itself through innovative use of technology, offers buyers a future-ready passive investment opportunity, Bayleys salespeople say.
The architecturally designed premises on 1,241sq m (more or less) of freehold land at 53 Domain Road features a new lease to Tend Health, a rapidly expanding health practitioner which uses digital technology to provide online and in-clinic GP appointments.
Bayleys salesperson Brendon Bradley says the property is a premium investment asset in the highly sought-after medical sector, with a strong tenant covenant that will appeal to selective investors.
“The huge demand for healthcare services locally and the critical nature of this sector represent stability within the rental profile, which has the potential to deliver a consistent and growing revenue stream.
Start your property search
“The tenant’s progressive use of digital technology to offer telehealth and online consultations positions them well to meet evolving patient demand preferences, providing critical resilience to future challenges and income protection for the investor.
“At the same time, the nature of these services is contributing positively to community health outcomes. This business aims to make healthcare more accessible to underrepresented groups, and its ability to achieve this mission adds an attractive ESG (Environmental, Social, Governance) dimension for conscious purchasers,” he says.
Tend Health has a five-year lease until June 2029, with two further three-year renewal rights. The agreement provides for rent reviews to market on the 1 June 2026 and biannually after that.
The property returns an annual net rental of $180,000 plus GST and outgoings.
Bradley is marketing the property for sale by auction, scheduled for 1:00 pm on Wednesday, 3rd April 2024 (unless sold prior), with Bayleys Tauranga colleague Craig Hilton.
The two-level centre spans 438sq m (more or less) and has a mix of offices/medical consulting rooms on the ground floor, and excellent staff amenities plus an external deck on level 1.
The balance of the site includes a fully sealed car parking area for 18 vehicles, a 22sq m (more or less) carport, and well-presented, landscaped grounds.
Hilton says the property is positioned on a major arterial route proximate to Papamoa’s primary commercial hub.
“Papamoa is the largest suburb neighbouring Tauranga and Mount Maunganui, recently benefitting from infrastructural upgrades including the Tauranga Eastern Link and arterial access to Te Puke in the South and the Mount in the North, increasing business opportunities from more efficient transit,” he says
“The region continues to grow at twice the national average, positioning Papamoa as a developing centre within the country’s Golden Triangle economic engine room.
“Investors will identify the strong locational growth fundamentals and the prime nature of the asset, which features a modern and well-constructed building with a strong tenant covenant from one of New Zealand’s most exciting and rapidly expanding healthcare organisations.
“It’s an ideal prescription for investors seeking a hands-off passive investment opportunity in a more conservative market environment,” he says.
- Supplied by Bayleys
