The property leased to Bupa at 200 Ohaupo Road, Glenview, Hamilton.
Two brain injury rehabilitation facilities in Henderson and Hamilton are up for sale with leases in place to one of New Zealand's largest healthcare providers Bupa Care Services NZ Ltd.
The Henderson property comprises adjoining residential buildings on separate freehold titles totalling 1543sq m at 18 and 20 Chadlington Avenue. It is being offered as a single investment parcel.
The Hamilton facility encompasses the redevelopment of a motel complex and is located on a 3987sq m site at 200 Ohaupo Road, Glenview.
The properties are being jointly marketed by CBRE and Bayleys Real Estate.
• The Henderson property will go up for auction on Wednesday, October 5 in Bayleys Auckland's central auction room at 4 Viaduct Harbour Avenue, unless sold earlier by negotiation.
• The Glenview property will be auctioned on Thursday, October 6, at Bayleys central Hamilton offices - 96 Ulster Street.
Both properties have been operated as brain injury rehabilitation facilities since 2009 by Bupa which has a new five-year lease on the Hamilton property, generating net annual rental income of $368,361.
The Henderson property is earning $160,638 per annum net from a five-year term running until November 2019.
Both leases have one five-year right of renewal.
CBRE's Andrew Stringer, who is involved in the marketing of both properties, says the leases also have annual rent reviews indexed to the Consumer Price Index (CPI).
"Under the terms of the net leases, Bupa is responsible for all property outgoings including rates and insurance, painting and redecorating the interiors at reasonable intervals as well as yards and grounds maintenance," he says.
Bupa Care Services is a wholly owned subsidiary of Bupa Australia Healthcare Pty Limited which in turn is part of the wider Bupa International Group. Founded in the UK in 1947, the group employs 84,000 people in 190 countries. It is one of New Zealand's largest healthcare providers operating retirement villages and elderly care homes, dental clinics and rehabilitation services.
Bupa acquired the business of Abano Rehabilitation Limited in 2012 and also has brain injury rehabilitation facilities in Whangarei, Gisborne, Hawkes Bay and Palmerston North as well as in Henderson and Hamilton. These are funded by The Accident Compensation Corporation (ACC) and the Ministry of Health.
"The Ohaupo Road property in Hamilton has been redeveloped as a dedicated rehabilitation facility which has involved the construction of a purpose-designed new residential building as well as the refurbishment of the former motel," says Stringer.
The newer building completed in 2010 has been designed for intensive rehabilitation of high dependency residents with six separate bedrooms and a gymnasium area. The original U-shaped motel complex now provides nine two-bedroom units and two studio units designed for independent assisted living, with kitchens and bathrooms. All units have frontage and access to an internal courtyard area.
There is also a two-storey administrative building at the north western end of the complex plus two separate laundries, a workshop and storage building.
Glenview is a suburb in the southern part of Hamilton, about 4km from the CBD, and Ohaupo Road is part of the State Highway 3 network.
"The large, high profile site located on one of Hamilton's busiest arterials underpins the property's future value," says Bayleys Hamilton's Andrew Shaw who is also marketing this property.
The site has a General Residential zoning, with a resource consent to operate as rehabilitation facility.
The two Chadlington Avenue properties are located at Henderson Heights, in a subdivision developed in the late 1990s.
"The area is a well-established and presented residential precinct," says Mike Adams, Bayleys West Auckland sales manager, who is marketing this property Stringer.
"It is well serviced with local amenities, with the Henderson town centre about five minutes' drive away providing all major commercial services as well as access to commuter train services to central Auckland."
Adams says the two modern dwellings have been constructed to a good standard with reinforced concrete floors, brick cladding, concrete tile roofs and aluminium joinery. The garage of the larger of the two properties has been converted for office use and for an exercise area.
"There have been some other minor modifications to the interiors but they present as relatively typical and straight forward residential dwellings which means they could easily be reused for housing at some stage in the future," Adams says.
"The new owner would therefore have a number of possible options available at the expiry of Bupa's current lease," says Adams.
"They could endeavour to renegotiate a longer term lease with Bupa, lease the dwellings for a similar use or on residential tenancies or sell one or both the freehold titles and their separate dwellings."