"Various lease expiry dates minimise cashflow exposure and provide the potential for future upside through negotiating longer lease terms. The remaining unit title could also be acquiredallowing the entire Town Centre-zoned site to be unlocked for redevelopment in the long term."
The property has a combined net lettable area of 1567sq 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.
Colliers' Matt Barnes, says the property is ideally located for growth. "Pukekohe is one of two satellite centres Auckland Council identifies as key to the city's growth. As a result, it is poised to undergo an unprecedented wave of urbanisation. This property will capitalise on Auckland's southward expansion in its outstanding central Pukekohe location."
Town Centre zoning allows high-density, mixed-used development of up to 18m in height with permitted uses including commercial, retail, medical or residential development.
The four medical tenants are:
• Anchor tenant Pukekohe Family Health Care has provided medical services to the community since the 1940s. The practice has 13 doctors and around 60 support staff at two locations, with an additional clinic in Pukekohe's eastern suburbs. Family Health's lease earns $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 earns $82,794 plus GST in annual rent, with annual inflation-indexed rent 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 earns $38,618 plus GST in net annual rent, with annual inflation-indexed rent 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 earns $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.
