Vital Healthcare fund manager Aaron Hockly said the property had a book value of $19.8 million, inclusive of seismic works. Ten parties of interest had been identified as possible buyers.
He said funds from the sale would be reinvested into the development of a couple of Vital Healthcare’s other investments in Hawke’s Bay - Royston Hospital and Royston Day Surgery.
He said Te Whatu Ora had a fixed-term lease for the next 11 years at 76 Wellesley Rd.
Vital Healthcare agreed with Te Whatu Ora to carry out a $2m upgrade to bring the building in line with new building code standards set following the Christchurch earthquake when Te Whatu Ora re-signed its lease previously.
The main stairwell has recently been upgraded and structural work was due to start soon to seismically improve the rest of the building.
The work will still be completed even with the sale of the building.
Andrew Boyd, Te Whatu Ora Hawke’s Bay executive director of financial services, said it declined an offer to buy the premises last year with the intention to continue as the leaseholder.
“Our lease term lasts until 2033 and we have a further right of renewal for another 12 years beyond that, until 2045,” Boyd said.
“We are very keen to continue to lease the premises from the current and future owner.”
Boyd said Te Whatu Ora sublets to a range of other third-party healthcare providers who operate within the premises, including City Medical Napier, Napier Pharmacy, Heart Foundation and Proactive Rehabilitation.
He said the seismic upgrade work on the building is expected to be completed by May 2024.
“Precautionary seismic upgrade work at Napier Health is progressing to schedule, with structural work on the stairwell complete and structural work on the first floor well underway.”
