A top-quality healthcare building with an established tenant signed to a long-term lease in Napier offers prospective purchasers the opportunity to acquire a prime asset with a steady rental stream.
The Napier Health Centre, located at 76 Wellesley Road, Napier South, has 4,295sq m of total net lettable area on a 7,171sq m freehold site that is zoned Fringe Commercial under the Napier City Operative District Plan.
The two-storey property is fully leased to Te Whatu Ora – Health New Zealand Te Matau a Māui Hawke's Bay which is the region’s single primary health organisation, covering a population of approximately 167,000 people.
Their current lease agreement runs until December 2033 and two further rights of renewal are in place for six years each, leading to a final expiry of December 2045.
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The total net passing income from the property is $1,247,964 plus GST per annum.
The building is prominently positioned and offers vast road exposure. It has 109 car parks, providing convenience for staff and patients.
The property is relatively centrally located to the general population of Napier with the botanical gardens and port activity to the north and a large residential catchment to the south. It sits approximately 800m from the beach, 2.5km from Napier Port, and 7km from the Hawke’s Bay Airport.
Colliers Directors Richard Kirke and Danny Blair have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 27 April, unless sold prior.
Purpose-built in 1999, the building has a two-storey high central atrium and a wave-shaped steel truss structure supporting the atrium roof.
The ground floor houses the reception area, a stairwell to level two, public waiting space, and the kid’s area. Medical clinics are located generally within both wings with circulation corridors connecting all areas.
The second floor is laid out in a more structured format with a range of clinics, offices, and meeting rooms divided by a circulation corridor.
Kirke, International Sales Director of Capital Markets at Colliers, says this property is a top-tier passive investment given the strength of the tenant covenant.
“The current occupants are well established in the building and are committed to the site for the long haul and have made their intentions clear,” Kirke says.
“Buyers will also be enticed by the future rental growth on offer as the rental income is to be reviewed annually based on CPI with a 5 per cent cap and collar. There are also market reviews in place upon renewal.”
Blair, Director at Colliers Hawke’s Bay, says recent research from Colliers notes there will be a growing reliance on healthcare facilities in New Zealand in the coming years due to the country’s ageing population.
“According to the latest Stats NZ data, between 2022 and 2028, the number of people 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,” Blair 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 being over the age of 65 by 2050.
“There is also likely to be a rise in public health expenditure as the population ages and governments fight chronic and transmissible diseases, while as a consequence of Covid-19, people’s interest in their own health and wellbeing is increasing significantly, adding to further expenditure in the sector.”
- Article supplied by Colliers
