Rest home perfectly poised to capture soaring aged care demand

The land and buildings housing what has been described as one of New Zealand’s best-located aged care facilities have been placed on the market for sale.

The single-level freehold property at 7-11 Marina Way in the western Bay of Plenty township of Athenree is occupied on a long-term lease by Athenree Lifecare.

This established family-owned business operates a 43-bed rest home, hospital, and secure dementia care facility on the site, providing 24-hour care for those who can no longer manage safely in their own home.

Bayleys salesperson Lloyd Davidson said the facility’s unique location at the northern end of Tauranga Harbour made it one of the best-placed in New Zealand to capture soaring demand for aged care.

“Thanks to New Zealand’s rapidly ageing population, aged-care real estate is recognised as one of our strongest long-term asset classes.

“Owners have the added security that income is underpinned by the Government in most cases, as residents’ costs are subsidised via the Residential Care Subsidy which is paid directly to providers by the Ministry of Health.

“Less than an hour’s drive from Tauranga and Whangamata, Athenree Lifecare sits beside the oldest of all New Zealand population catchments. Its location at the Waikato-Bay of Plenty boundary also means it can accept referrals from two district health boards.

“These factors, combined with a scenic waterfront situation overlooking Shelly Bay Estuary, make this arguably one of the best-located rest homes in the land. This positions a new owner ideally to capitalise on the already strong long-term fundamentals of aged-care real estate,” said Davidson.

Athenree Life Limited occupies the Marina Way site on a current lease that runs through to 2032, with two further 12-year rights of renewal.

Its tenancy generates net rental income of $275,000 plus outgoings and GST per annum. The lease incorporates annual CPI rental increases, replaced with market reviews every sixth year, the next one being in 2026.

The property at 7-11 Marina Way, Athenree, is now being marketed for sale by deadline private treaty closing on Thursday 16 September (unless sold prior), through Bayleys Tauranga.

Davidson and fellow salesperson Rory Brown said the property for sale consisted of buildings with a total floor area of some 1,106 square metres on approximately 2,997 square metres of Residential-zoned land across three freehold titles.

Davidson said the original building was completed in 1986 with extensions added around 1995 and 2005.

“The buildings accommodate 33 dual-purpose rest home and hospital beds, plus 10 beds operating as a dedicated dementia wing. The property forms a triangular configuration centred around a large internal courtyard and landscaped grounds,” Davidson said.

The main entrance is positioned to the east, opening to a reception and waiting area, manager’s office, staffroom and an additional office.

Located to the far eastern corner is the main resident lounge, dining room and kitchen. The commercial-scale kitchen comes with a freestanding walk-in fridge/freezer unit, two commercial-grade gas hob stoves and ovens, a large stainless-steel extractor and dishwasher.

The main lounge opens onto a patio area with estuary views.

“Residents’ rooms are generally spacious. Many have views over the gardens and water or open onto the outside area. One double room is suitable for couples and a number of rooms have ensuites. Each room is freshly painted and furnished,” said Davidson.

The buildings are constructed with concrete and concrete-block foundations, concrete floors, external walls combining brick veneer and fibre cement panels, and concrete-tile roofing.

Brown said already strong demand for aged-care facilities would only rise further as the population continued to age.

By 2036 one in 4.5 New Zealanders, or over 1.25 million people, will be aged 65-plus, according to analysis by the Ministry of Social Development (MSD).

This represents an increase of nearly 550,000 in the population of over-65s in the 30 years from 2016.

“MSD’s analysis shows that our regions are ageing faster than many of our major cities,” said Brown.

“The Thames-Coromandel District, a few kilometres from the Athenree property, is home to the oldest of all communities with a median age of 51 years, compared with a national figure of 37.5 years. By 2033, neighbouring Hauraki District is also projected to have a median age over 50,” Brown said.

The Athenree property is located about four kilometres east of State Highway 2, which provides easy connections to Tauranga and Waihi township. The site is immediately surrounded by a residential area dating predominantly from the 1970s, with lifestyle and horticultural blocks beyond.

- This article was supplied by Bayleys