Paeroa Medical centre, at 15 Princess St, is one block back from the CBD. Photo / Supplied
Land and buildings housing the only full-service medical centre in the Waikato township of Paeroa are now for sale and are featured in Bayleys' latest Total Property magazine.
Brokers say the property, to be auctioned through Bayleys Hamilton on March 9, offers a purpose-built complex, with a suite of established healthcare tenants.
Josh Smith and Andy Shaw are selling the 610sq m medical centre, which stands on on a 1211sq m section.
It generates net annual rental income of $115,341, from its six tenants, including a doctors' surgery, dentistry rooms, pharmacy laboratory, community and mental health services which serve local and wider North Waikato communities.
"Paeroa Medical centre is centrally located at 15 Princess Street, one block back from the CBD, and has a 2015 rating valuation of $1.36 million," says Smith. "The building is within easy walking access to the township and close to the river."
Tenants include Paeroa Medical Group, Pimenov Dentist, Pathlab Waikato, Paeroa Pharmacy, Waikato District Health Board (WDHB) Mental Health and WDHB Community Health.
The lease terms are as follows:
• Anchor tenant Paeroa Medical Group has a five-year lease running through until 2020, with two three-year rights of renewal.
•Paeroa Pharmacy has a five-year lease running through until 2020, with two three-year rights of renewal.
•Pathlab Waikato has a four-year lease running through until 2019, with two three-year rights of renewal.
•Pimenov Dentist has a two-year lease running through until later this year, with three three-year rights of renewal.
•Waikato District Health Board has a two-year lease running through until later this year, with three three-year rights of renewal.
•The current owner of the property has a three-year lease on a small part of the premises running through until 2020.
Smith says the property's situation and tenants will make it attractive to a potential investment-focused buyer. All tenants are on bi-annual rent reviews, Smith points out.
"Centrally located, the medical centre is only a few hundred metres from Paeroa's town centre. It is easily accessible for service users, with a carpark behind the building for eight vehicles and parking on the street. Paeroa is centrally located between three major centres - Tauranga Hamilton and Auckland.
"As one of the only medical centres in the town, the healthcare services provided within the building offer an essential service to the region.
"This is a thriving medical hub, well positioned in a town currently experiencing strong investment and growth. The businesses across the tenants ensure compatibility within the centre, providing a full-service offering to users, all available in a 'one-stop' onsite location.
"The six leases deliver a broad risk profile and provide a diversified income source for any potential new owner looking at the building for investment returns," says Smith.
Shaw says the brick building was constructed to a high standard 20 years ago and has an A+ seismic rating. Since then, the building it had been well maintained and continually modernised, he says. A full upgrade of the pharmacy was completed last year.
The centre features multiple consultation rooms, a tea room, reception area and clinical rooms, and is zoned commercial 8A.
"Given the building was constructed more than two decades ago, and its seismic rating is 100 percent of New Building Standards, this demonstrates how well it has been constructed and maintained. It's unusual for a building of this age to have this level of rating," says Shaw.
"This is a reputable medical centre with an established clientele.
"The healthcare facilities service the wider community and the businesses have been developed to be user friendly, with systems in place to ensure the premises are well maintained and operating well."