The land and buildings housing a full-service medical hub in Taupo have been placed on the market for sale - offering potential buyers a purpose-built complex with a suite of established healthcare tenants on long leases.
The hub is spread over two adjoining buildings at 117 Heuheu Street and 118 Tuwharetoa Street, and provides healthcare for the local and wider Taupo community.
It sits on 2,683sqm of land and offers 989sqm of floor space, with three street frontages.
Bayleys Wellington and Bayleys Taupo are marketing the property for sale by tender, with tenders closing at 4pm on December 6.
Bayleys sales agent James Higgie says: “The property is fully leased, generating a net rental income of $296,000 a year from four established tenants.
“The building at 117 HeuHeu Street is newly refurbished and home to Taupo Medical Centre and Lake Taupo Pharmacy. 118 Tuwharetoa is a new build and houses the medical centre’s administrative offices, Mathai Dental and Pinnacle Midland Health Network.”
Mr Higgie says Taupo Medical Centre was established more than 40 years ago and provides its patients 24-hour emergency cover, with nurses, locum GPs, a physician associate, medical centre assistants and support staff on its roster.
Mr Higgie says the property’s location and tenants make it an attractive opportunity for investment-focused buyers.
“The four leases deliver a broad risk profile and provide a diversified income source for any potential new owner looking at the building for investment returns,” he says.
He adds: “Patients value ease of access, good parking facilities, nice consulting rooms, and proximity to other services highly when looking at healthcare options,” Mr Higgie says.
“The medical hub is in the heart of Taupo and is easily accessible for service users, providing parking spaces for 35 vehicles. Furthermore, the healthcare services provided within the building offer an essential service to the region.”
The medical and health sector property market in New Zealand is strong, and has benefited from increases in wealth and a growing awareness of health-related issues.
Typically, income and capital returns on medical centres are recession proof – compared to retail, office and industrial real estate – as they are not tied to traditional economic drivers such as employment and business and consumer confidence.
Medical-related tenants are typically well-resourced and well-established and sign long-term leases with personal guarantees attached.