Developers eye Hastings healthcare centre

The Health Centre premises is centrally sited at the corner of Queen St East and Russell St North. Photo / Supplied

Developers are reported to be eyeing the existing Hastings Health Centre premises, as a possible future hotel, or possibly an accommodation facility for Hawke's Bay's agricultural workers.

Bayleys is now marketing for sale or lease, the freehold property which, for 15 years, has housed the region's biggest private medical and healthcare centre.

When it opened in 2002, the two-storey centre, Cnr Queen St East and Russell St North, was one of New Zealand's first integrated family health centres.

Now the 2703sq m building, standing on about 2502sq m of land, features in Bayleys' latest Total Property portfolio magazine.

The plan is to move medical services sustained by some 50 doctors — supported by a full complement of nurses and administrative personnel — into new premises next year. A $20 million medical facility has been purpose-built on the former Hastings Bunnings site, corner St Aubyn and King Sts.

The present high-profile building, at 101 Queen St East, has a lease running through to next year, with a further six-month right of renewal, which would generate a new rental of $540,000 per annum.

Bayleys Havelock North salespeople Rollo Vavasour and Paul Garland see potential for it to be converted to boutique hotel accommodation.

"Depending on buyer dynamics and terms, the property's owners would also look at a refurbishment and leasing arrangement with prospective new tenants," says Vavasour.

"Meanwhile, initial interest from property developers identifies three potential future uses.

"All three acknowledge the building's office-style internal lay-out of the property, along with its various 'zones', are the cornerstone to what could be undertaken at the site."

Plumbing and wiring layout in the Art Deco Health Centre could assist conversion to accommodation. Photo / Supplied

The three options are:

• Reformatting the interior into a boutique four-star-rated hotel accommodation. "There is a substantial amount of plumbing and electrical wiring throughout the property to sustain the multitude of various consultation rooms, patient support amenities and staff facilities. So subject to the consenting process, the centre's interior could sustain the creation of an intimate lodge-styled four-star hotel. Ample guest car parking immediately outside the front portico would underpin this option. Under this format, ground floor space used as consultation rooms could be upgraded into an on-site restaurant and bar; the adjoining pharmacy floor plate would serve as a conference and function venue. "This region has focused on increasing the hotel inventory in Napier but little has been put forward for doing likewise in Hastings, so this property provides a blank canvas for establishing a branded hotel presence in the city. Its location, size and structure are high on a list of 'wants' that hotel operators look for when identifying sites, so we're certainly prepared for this development option to come up."
• Garland sees a second option of converting the Queen St East site into a modern serviced office complex. "Under this proposal, the consultation suites and nursing treatment rooms on all levels could be renovated into individually-let offices, the reception desks would remain as is, and the existing administrative rooms could be reformatted into meeting spaces," he says. "Existing ground floor pharmacy space could also be transformed into a larger stand-alone commercial unit to maximise returns on the floor plate and offer an alternative bigger workspace environment to the smaller single office units."
• The third option would be reformatting the building into short-term accommodation for workers in Hawke's Bay's agricultural sector – both the vineyards and the apple orchards — something that has long been mooted for the prominent Queen Street East site. "Architects have indicated the Hastings Health Centre consultation suites could be easily converted into single bedrooms and even dormitories, while the reception areas could be opened up into communal lounges," says Garland. "Present retail pharmacy floor space could be reconfigured to add kitchen or dining room space, while the numerous administrative areas and storage rooms could be converted into shower units. Hawke's Bay's agricultural labour market shortage is virtually year-round now — with plantation maintenance in autumn and winter, and harvesting in summer."

Vavasour notes that in May, Immigration New Zealand declared a labour shortage in Hawke's Bay, and eased the visa conditions for seasonal workers in the region's horticulture and viticulture sectors.

"Our labour shortage has partially been caused by the serious lack of suitable accommodation for workers here," he adds.

Following structural strengthening and refurbishment work in the early 2000s, the various wings and floors within the centre building have New Build Standard (NBS) ratings, of between 55 and 100 per cent.

"Any refurbishment of the interior floorplate to sustain any of the future use options for the premises could, of course, be undertaken simultaneously with further strengthening works to minimise down-time for the property," says Vavasour.

"The three development options for this property are in harmony with Hastings District Council's Draft Long Term Plan (2018-2028).

"A new tenancy profile for the site underpins the council's desire to make Hastings "an attractive place to invest and do business", and its stated plan to, "work with others to address skill and labour market needs."