A $5.6 million medical centre will be built on a prime piece of central Whangarei land after Northland Regional Council sold the site to developers.
The NRC has sold a 4350sq m property and buildings it owned on Reyburn St, which was the former Mitsubishi Motors site, for $2.6 million to Reyburn Whangarei, part of the Auckland-based Johnstone Group.
Reyburn Whangarei plans to build a $5.6 million medical centre on the site.
NRC chairman Bill Shepherd said the new owner intended to develop a new urgent care centre in conjunction with White Cross, integrating a new larger White Cross Urgent Care with dental, X-ray and ultrasound, Labtests services and physio.
The company also has a limited amount of additional space which it hopes will accommodate additional medical practices, Mr Shepherd said.
He said the regional council was keen to stimulate urban development and attract investment in central Whangarei and had been seeking a suitable developer for the property for some time.
"Its sale - at current valuation and after an approach from the developer - is a strategic and very carefully considered one by council."
Mr Shepherd said the Reyburn Whangarei proposal fit well within the Whangarei District Council's Hihiaua Precinct Plan, which encouraged complementary mixed-use activities including residential, boutique retail, cafes, limited office, community services, entertainment and tourism.
The company is planning a two-stage development, aiming to begin construction of the first $5.6 million stage - the medical centre - in August and have it finished early next year.