The land and buildings of a prominently positioned medical and retail centre in the rapidly developing Bay of Plenty town of Omokoroa presents prospective purchasers with the opportunity to acquire a strategic asset with a strong tenant covenant and future growth potential.
170 Omokoroa Road has 1,048sq m of total floor area spread across two buildings that is home to eight individual tenancies on a 4,497sq m freehold, Commercial zoned site.
Tenancies range in size from 56sq m to 403sq m and enjoy prominent frontages, a north-facing aspect, and a share of the 66 on-site car parks.
The anchor tenants – Omokoroa Medical Centre and Omokoroa Pharmacy – occupy approximately 77 per cent of the floor space at the property and have long-term leases that run until 2033 with one further right of renewal for 10 years each.
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Aside from the anchor tenants, the other leases all offer further renewal options on top of their current terms and most include two-yearly market rent reviews, providing built-in growth for the new owner.
The total annual rental income from the property is $353,885 plus GST and outgoings.
With a wide road frontage, the site offers easy access for customers and there are also future redevelopment opportunities given the low site coverage of approximately 25 per cent.
Colliers Brokers Simon Clark and Rich Davidson have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 20 October, unless sold prior.
Constructed in 2012, the subject property has been architecturally designed as two stand-alone, single-level buildings made of low-maintenance materials.
The building closest to Omokoroa Road accommodates Omokoroa Pharmacy, a dentist, optician, professional office, and a hairdresser, while the building furthest from the road is home to Omokoroa Medical Centre and a physiotherapy clinic.
Omokoroa has an attractive range of local amenities and outdoor harbourside activities and is approximately 15 minutes from Tauranga.
Clark, Managing Director at Colliers Tauranga, says Omokoroa is a key growth hub in the Western Bay of Plenty area that is popular among retirees and young families.
“Omokoroa is a town that is undergoing significant development through a combination of infrastructure projects that will help meet the needs of its expanding population,” Clark says.
“Data from the 2018 Census notes the population was 3,210, up from 2,334 in 2013 and recent projections suggest the area will grow to accommodate 12,000 people in the coming years.”
Davidson, Commercial and Industrial Sales broker at Colliers Tauranga, says research from Colliers highlights the growing investment opportunities in the life sciences and healthcare sectors.
“According to the latest Stats NZ data, between 2022 and 2028, the number of people in New Zealand aged 65-plus will increase by almost 20 per cent, reaching around 1 million people. This is
projected to reach 1.3 million people by 2040 and around 1.5 million people by the 2050s,” Davidson says.
“This means that while approximately one in every six people in New Zealand is above the age of 65 currently, this will increase to around one in every four people by 2050.”
Davidson says the Covid-19 pandemic and a heightened awareness around personal health and wellbeing is driving a global shift towards further investment in the healthcare sector.
“While New Zealand’s life sciences and healthcare property sectors are not as evolved as some large overseas markets, there’s a range of advancements being made locally, suggesting this trend will soon emerge on our shores.
“A property such as this one that includes strong investment fundamentals, underpinned by long-term leases to established tenants in a high-growth area, makes for an incredibly compelling purchasing opportunity.”
- Article supplied by Colliers
