An opportunity to secure a high-profile medical centre on a freehold 4,322 sqm site with a six-year lease to Waitemata District Health Board has become available on the burgeoning Hibiscus Coast.
The fully tenanted medical facility of 1,319 sqm is located at 136 Whangaparaoa Road, which places it near the beginning of the main arterial highway serving the Whangaparaoa Peninsula, and about 1km from the Hibiscus Highway, between Silverdale and Orewa.
The Waitemata District Health Board (DHB) has leased the freehold property since it was custom built for it in 2001, just after the time when New Zealand’s DHBs came into force as a result of the New Zealand Public Health and Disability (NZPHD) Act 2000.
Colliers has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on the 26th of May, unless it sells earlier.
Shoneet Chand, Investment Sales Director at Colliers who is marketing the property alongside colleagues Gareth Fraser and Jimmy O’Brien, says this is a well-presented asset in the increasingly popular health sector that generates steady and secure income from a government-related tenant.
“The 1,319 sqm premises will generate annual income of $415,847 plus GST and outgoings on settlement with a six-year lease that commenced in June 2019 and a final expiry in June 2025.
“There is also fixed annual rental growth with a market review upon renewal,” says Chand.
Gareth Fraser, Auckland Director of Investment Sales at Colliers, notes the well-maintained property presents well and proves highly functional.
“The two-storey purpose-built health care centre comprises a modern reinforced concrete block building with aluminium joinery and steel roofing.
“The ground floor provides a specialised layout to suit clinical requirements with the first floor primarily used for administration space, with a timber deck extending from the staff lounge and kitchen.
“The first floor is accessed via stairwells at either end of the ground floor as well as being serviced by a central lift.
“A canopy at the front of the premises provides covered access and extends out to the driveway with open parking for 90 cars, making this a highly desirable land and building package,” says Fraser. Jimmy O’Brien, General Manager and Director at Colliers North Shore notes that the investment proposition based on its current features is compelling, but it is also the growth potential that is highly attractive.
“With just 30 per cent site coverage, the property is underdeveloped, affording the owner an opportunity to expand the centre in the future as the population in the area grows.
“Enabling this is the fact that the property is zoned Special Purpose - Healthcare Facility and Hospital under the Auckland Unitary Plan.
“The zoning is typically applied to large, land-extensive facilities with highly visible buildings and substantial parking areas. This enables a range of healthcare related and supporting activities to cater for the diverse requirements of the users, employees and visitors to the hospitals and healthcare facilities.
“There is obviously plenty of scope for the new owner to investigate and evaluate potential future growth plans in this population growth hotspot,” says O’Brien.
Hibiscus and Bays is one of Auckland's most populous local board areas with a population of 104,010 that is forecast to increase to 144,800 by 2038, according to Statistics New Zealand.
The Waitemata DHB provides a range of community services from the medical facility. Serving more than 630,000 people across the communities of Rodney, North Shore and Waitakere, it is the largest DHB by population in the country.
Chand concludes by saying: “given the income stream with fixed growth, the well-constructed and presented premises with low site coverage and future growth potential, this is a highly desirable asset for discerning purchasers to pursue.”