Healthy investment in Pukekohe’s town centre
Pukekohe’s primary medical centre is for sale, presenting an opportunity to acquire an add-value investment in one of Auckland’s key growth areas.
Colliers International is marketing five of the six strata-titled freehold units at 10 West Street for sale by deadline private treaty closing at 4pm on Wednesday 12 December, unless sold prior.
Gareth Fraser, Auckland Investment Sales Director at Colliers International, says it is a chance to acquire a superbly located investment property with strong tenant covenant and future upside potential.
“As Pukekohe’s main healthcare centre, this well-known property is ideally positioned to serve the town’s growing resident population.
“The property occupies a high-profile, strategic corner site at the roundabout of Wesley and Tobin streets, at the western gateway to Pukekohe’s town centre.
“It is fully leased to four long-established medical tenants, returning $677,412 plus GST in split-risk annual rental income.
“Various lease expiry dates minimise cashflow exposure and provide the potential for future upside through negotiating longer lease terms.
“The successful buyer will also appreciate the ability to potentially acquire the remaining unit title, allowing the entire Town Centre-zoned site to be unlocked for redevelopment in the long term.”
The offering has a combined net lettable area of 1,567sq m, representing more than 90 per cent of the unit title. It excludes a 186sq m unit in the complex leased to Unichem Pharmacy.
Built in the 1990s, the two-level medical centre has an A-grade 85 per cent NBS seismic rating.
It is anchored by Pukekohe Family Health Care, with the remaining units leased to Auckland Radiology, Labtests and Pukekohe Physiotherapists.
Matt Barnes, Director of Colliers’ South Auckland Investment Sales team, says the property is ideally located for growth.
“Pukekohe is one of two satellite centres that Auckland Council has identified as key to the city’s growth. As a result, it is poised to undergo an unprecedented wave of urbanisation.
“The property for sale is ideally positioned to capitalise on Auckland’s southward expansion, with generous zoning and an outstanding central Pukekohe location.
“Town Centre zoning allows for high-density, mixed-used development of up to 18m in height. A wide range of uses is permitted including commercial, retail, medical or residential development.”
Anchor tenant Pukekohe Family Health Care has been providing medical services to the community since the 1940s.
The practice has 13 doctors and some 60 support staff at two locations, with an additional clinic in Pukekohe’s eastern suburbs.
Pukekohe Family Health Care Limited’s lease returns $497,000 plus GST in annual rent, with market reviews every six months. The lease expires in January 2020, followed by a six-year right of renewal.
Auckland Radiology was established in 1936 and now has 18 specialist radiology branches throughout Auckland.
Its Pukekohe branch offers mammography, ultrasound, obstetric ultrasound and X-ray services.
Auckland Radiology’s lease returns some $82,794 plus GST in annual rent, with annual inflation-indexed rental reviews. The lease expires in November 2021, followed by a six-year right of renewal.
Labtests was established in 2009 and remains at the cutting edge of pathology services. Its purpose-built lab includes one of the world’s largest Siemens automated analysing systems.
Its Pukekohe collection centre offers standard tests as well as skin sensitivity tests and specialist tuberculosis screening tests.
Labtests’ lease returns some $38,618 plus GST in net annual rent, with annual inflation-indexed rental reviews. The lease expires in September 2020, with no rights of renewal.
Pukekohe Physiotherapists has eight full-time physios and four support staff.
The practice offers general physiotherapy alongside specialist hand, sports and rehabilitation physio services.
The physio’s lease returns $59,000 plus GST in annual rent, with inflation-indexed and market reviews every alternate year. The lease expires in October 2022, followed by a five-year right of renewal.
Pukekohe is located about 50km southwest of Auckland’s CBD.
The township services its own population of more than 30,000 as well as the wider Franklin District, which includes the growth hubs of Waiuku, Pokeno, Tuakau and Karaka.
It is only eight minutes from State Highway 1, putting it within 45 minutes of Auckland’s CBD via car.
Pukekohe can also be accessed via SH22 from Drury, which is earmarked for substantial industrial, commercial and residential growth.
The Pukekohe Train Station is centrally located off Manukau Road, a main urban road through town.
Regular services provide an easy commute into Auckland’s CBD, which is an hour and 10 minutes from Britomart via train.
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