A highly visible, multi-tenanted medical facility with entrenched occupants in Manukau presents buyers with the opportunity to acquire a top-tier asset, the likes of which are seldom seen on the open market.
175-195 Cavendish Drive, Manukau has a total lettable area of 1,761sq m spread across two buildings on a 5,112sq m site. The property is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
With six medical tenants and one food retail tenant, the total net annual rental income from the property is $704,450 plus GST.
Most of the tenants have five or six-year lease terms in place, while a handful are occupying their premises on shorter stints, but all have final expiries of 30 September 2034 if all rights of renewal are taken up.
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The tenancies have a mixture of market and CPI rent reviews scheduled for the coming years and most occupants have both, ensuring built-in rental growth for the new owner.
With prominent road frontage to Cavendish Drive, this well-maintained asset presents in magnificent order and must be considered by all discerning investors.
Colliers Brokers Matthew Barnes, David Burley, and Ryan Gibb have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 14 December, unless sold prior.
Constructed in 2015, the property is home to anchor tenants SRG Radiology, who occupy multiple units, well-known GP clinic Cavendish Doctors, and specialists Cavendish Clinic, as well as supporting tenancies.
Of the eight units at the property, sizes range from 100sq m to 605sq m offering functionality and convenience for the occupants. There is car parking at the property and easy access from the street.
Matthew Barnes, Director of Investment Sales at Colliers, says the long lease terms and favourable agreements add to the strength of the tenant covenant at the property.
“With tenants in place on lengthy lease terms, investors can approach this property with confidence as they look to add to their portfolios,” Barnes says.
“The future rental reviews will provide continued growth for the new owner, making this a compelling offering. It is rare to see split-risk investment properties in the medical sector with this type of scale presented to the open market.”
Burley, Auckland Director of Investment Sales at Colliers, says Manukau is a key growth area in the city that will benefit from significant council investment.
“Auckland Council have identified Manukau as a growth node that will expand at a rapid rate and their projections suggest vast increases in the number of households and job opportunities in the surrounding area,” Burley says.
“Previous research from Infometrics notes that Manukau and the surrounding business area contributes to about 14 per cent of Auckland’s total gross domestic product, indicating it is a part of the city which punches above its weight.
“Manukau’s civic, retail, education, and cultural facilities have all become more accessible due to an enhanced transport offering in the region, underpinned by extensive developments in the availability of buses.”
Gibb, Investment Sales Broker at Colliers, says New Zealand’s ageing population will place further emphasis on the medical sector as there will be continued demand for its services.
“Stats NZ have forecast that by 2028 there will be approximately 1 million Kiwis who will be 65 or older. By the 2050s the over 65s could make up one quarter of New Zealand’s population,” Gibb says.
“Overseas investment trends have shown a growing interest in the healthcare and life sciences sectors and there is potential for such investor activity to flow through to these shores.
“When examining the key fundamentals of this investment opportunity it shapes as a first-class offering.”
Article supplied by Colliers
