Napier's former hospital complex for sale

The site is readily identified by both locals and visitors. Photo / Supplied

Napier's red-roofed hospital complex of 17 buildings is back on the market, offering panoramic 360-degree views from its prominent location on top of the city's Hospital Hill.

Tenders are being called through Nick Hargreaves, national director at Jones Lang LaSalle, and Eoin Carty, commercial sales manager for Bayleys Napier, on behalf of the Crown Health Financing Agency with a closing date of June 3, if not sold prior to that date.

The 4.95ha property in eight titles includes some structures that date back over 100 years but most of the buildings have been constructed within the past 40 years.

The hospital opened in 1880, but in 1995 it was decided that the regional hospital should be in Hastings. As a result, the Napier site has been without a tenant since 2000.

Wellington developer Eyal Aharoni purchased the property through his companies Napier Heights Holdings Ltd and Napier Heights Ltd for $20 million in 2006, with the intention of building a residential development on the site.

However, Aharoni abandoned his plans for the site late last year following a protracted legal dispute over issues that included the valuation and quality of the property, and terms of settlement.

Carty says the site's position with views over the city and the ocean provide "a magical backdrop" and potential purchasers could pursue a variety of options for the site.

"The accommodating title structures will be a major drawcard for local and international developers, investors or owner-occupiers," Carty predicts.

Hargreaves says that despite the failure of Aharoni's proposed development, the property still provides a significant opportunity.

"All the eight titles into which the property has already been subdivided have street frontages, which increases the opportunities for future redevelopment," he says.

The largest of the eight titles is situated on the eastern side of the site and comprises 2.79ha. The former main clinical services block is on this title, consisting of an eight-level building with two adjoining buildings constructed in the early 1970s.

The other seven titles range in size from 1264sq m to 4991sq m and lend themselves to a variety of redevelopment options.

The former hospital is in a predominantly upmarket residential area close to council reserves and the botanical gardens with views available over the Pacific Ocean, Napier City and the Ahuriri seaport below. It offers easy access to schools, shops and amenities in Napier's CBD and to the Ahuriri retail area.

"Napier is a high-growth region favoured by local residents for its high quality of living and warm climate," Hargreaves says. "It is also a popular place with both regional and international tourists attracted by its art-deco culture and position at the centre of the Hawkes Bay wine and horticultural industries."

Hargreaves says a significant benefit of the site is its proximity to the traditionally industrial suburb of Ahuriri, which has expanded and undergone significant redevelopment due to its attractive waterfront location.

"The retail sector has been expanded to include cafés, restaurants and bars, which support local residential housing and apartment developments."

Hargreaves says the hospital site has been enhanced by an abundance of established trees and is zoned by the Napier District Plan as being within the Napier Hill Character Zone.

"This zoning allows for a wide range of permitted activities including residential, residential and day care, travellers' accommodation and educational facilities," he says.

Hargreaves adds that there is potential for purchasers to apply for permission to carry out discretionary activities, such as the development of a retirement complex.