A large-scale medical facility in the North Shore suburb of Rosedale presents buyers with the opportunity to acquire a premier asset that offers substantial rental income underpinned by tenants with long-term lease agreements.
Apollo Health & Wellness, located at 119 Apollo Drive, Rosedale offers 4,906sq m of total net lettable area on a 9,988sq m freehold site that is zoned Special Purpose – Healthcare Facility and Hospital Zone under the Auckland Unitary Plan.
The Special Purpose – Healthcare Facility and Hospital Zone applies to several of Auckland’s hospitals and healthcare facilities. These are generally large, land-extensive facilities with a range of activities related to their primary function.
The property has 23 individual tenants offering the new owner a split-risk investment opportunity. The Doctors Apollo, a subsidiary of GreenCross Health Group, are the anchor tenant with audiologists, physiotherapists, laboratory and radiology providers, fertility specialists, and GPs also in the facility among a host of other medical practitioners.
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Two of the tenancies at the property are vacant, providing a growth opportunity for buyers who will be able to add to the annual net passing income of $1,758,837 plus GST. When fully tenanted, market estimates suggest the total annual rental income would be approximately $1,952,563 plus GST.
Sitting on a high-profile corner site, the property has significant road exposure and offers 210 on-site car parks, providing further convenience for end-users of this reputable medical facility that offers a diverse range of services.
Colliers Directors Peter Herdson, Richard Kirke, Blair Peterken, and Shoneet Chand have been exclusively appointed to market the property for sale and are taking expressions of interest closing at 4pm on 16 March, unless sold prior.
Herdson, National Director of Capital Markets at Colliers, says the property offers a complementary tenant mix.
“There’s an incredibly strong tenant profile with a weighted average lease term of 6.7 years,” Herdson says.
“The lease agreements for the property are tied to a combination of indexed, fixed, and market-led review structures that can potentially provide built-in rental growth for the new owner.
“With many tenancies running well into the next decade there is a strong tenant covenant at the property given the long-term commitment of the current occupants.”
Kirke, International Sales Director of Capital Markets at Colliers, says recent research from Colliers indicates there will be a growing demand for medical facilities in the coming years as New Zealand’s population ages.
“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,” Kirke 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 and will lead to further reliance on centres such as the subject property.”
Peterken, Director of Capital Markets at Colliers, says Rosedale, which is part of the wider Albany area, is a rapidly developing suburb that continues to experience population growth.
“Rosedale is a well-connected location, offering readily available public transportation and easy access to the motorway system while being only 20km from Auckland CBD,” Peterken says.
“Auckland Council has identified the surrounding Albany precinct as one of the three key ‘nodes’ outside of the city centre. As Auckland continues to grow and develop, the identified node areas will support business and residential growth.
“Upgrades to State Highway 1 and State Highway 18 will provide reliable journey times for the movement of people, expanding the catchment size of this centre, which will contribute to the continued demand for this medical facility.”
Chand, Director of Investment Sales at Colliers, says this property is one of the most impressive offerings that will be presented to the open market this year in a sought-after asset class.
“With many tenants in the medical sector agreeing to lengthy leases, these properties generate strong interest among buyers who recognise the long-term growth potential on offer,” Chand says.
“We encourage all interested parties to contact us immediately to ensure they don’t miss out on this outstanding purchasing opportunity.”
- Article supplied by Colliers
