The land and buildings housing the only full-service medical centre in the Waikato township of Paeroa has been placed on the market for sale - offering potential new owners a purpose-built complex with established healthcare tenants.
As the only full-service medical centre in the town - encompassing a doctors’ surgery, dentistry rooms, pharmacy laboratory, community and mental health services - the complex services the local and wider North Waikato community. Paeroa Medical centre is centrally located at 15 Princess Street, one block back from the CBD. The building is within easy walking access to the township and close to the river.
The building and land have been placed on the market for sale with Bayleys via an auction process on 9 December, unless sold prior. It is being marketed by Bayleys Hamilton salesperson Josh Smith. The property has a rating valuation of $1.36 million.
The 610sqm medical centre complex is built on a 1211sqm section, generating an annual net rental income of $113,000 from six tenants.
Mr Smith said the property’s situation and tenants made it an attractive opportunity for a potential investment-focused buyer.
“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,” he said.
“Furthermore, 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.”
Tenants within the building include, Paeroa Medical Group, Pimenov Dentist, Pathlab Waikato, Paeroa Pharmacy, Waikato District Health Board (WDHB) Mental Health and WDHB Community Health.
“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,” said Mr Smith.
Anchor tenant Paeroa Medical Group has a five-year lease commencing in May this year, with two three-year rights of renewal and a final expiry of May 2026. Of the other tenants, one lease has a final expiry date of 2017, one in 2018, one in 2022, one in 2025 and one is under negotiation.
The brick building was constructed more than 20 years ago to a high standard, and has an A+ seismic rating. Since then the building it has been well maintained and continually modernised. A full upgrade of the pharmacy is currently underway. The centre features multiple consultation rooms, a tea room, reception area and clinical rooms.
“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,” said Mr Smith.
“This is a reputable medical centre with an established clientele. The healthcare facilities service the wider community and the businesses have been developed to beuser friendly, with systems in place to ensure the premises are well maintained and operating well.”
Mr Smith said Paeroa and surrounding area continues to thrive with a number of developments underway.
These include the development of the former Paeroa Racecourse into a 35-hectare residential subdivision which is currently in the planning stage, and a new ice cream factory at nearby Kerepehi, which is under construction. The factory will create 50 new jobs, growing to an expected 100 jobs in the future. The growth of Auckland is also having a knock-on effect, with a number of businesses looking to move to the Waikato region.
Paeroa is world famous for its L&P drink and landmark L&P bottle, where many visitors stop for a photo, and is the proud winner of the 2012 New Zealand Community of the Year Award, said Mr Smith.
“Other key attractions within the proximity of Paeroa are the once gold-rich Karangahake Gorge and its hugely popular designated cycle trail.