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Investors eye pet project as share of veterinary hospital site goes up for sale

The high-profile freehold site of more than 1,300 square metres sits beside State Highway 29 at Pyes Pa. It is fully leased to VetPartners New Zealand Operations Limited, trading as Barkes Corner Veterinary Hospital and Clinic.

Established in Australia in 2016, the fast-growing VetPartners group has some 4,500 staff and more than 240 practices throughout Australia and New Zealand.

The Pyes Pa practice has a trading history of some 50 years and, along with a sister clinic in Brookfield, serves Bay of Plenty pet owners with a range of medical, surgical, dental and emergency care for their pets.

The group’s tenancy at the Pyes Pa site generates annual net rental income of $113,319 plus outgoings and GST. The current lease runs through to 2025 with two further 10-year rights of renewal. It incorporates two-yearly CPI rent reviews, replaced by market reviews at lease renewals.

The 50 percent shareholding in the property at 507R State Highway 29, Pyes Pa, Tauranga, is being marketed for sale through Brendon Bradley and Graeme Coleman of Bayleys Tauranga.

Sale will be by deadline private treaty closing on Friday 11 March, unless it is sold earlier.

Bradley said the strong tenant covenant and long lease to a high-calibre professional tenant would heighten interest among buyers seeking a quality passive investment.

The approximately 316-square metre purpose-built veterinary facility sits on an elevated site of some 1,354 square metres, with 16 car parks.

“This two-level veterinary clinic and hospital was originally constructed in the early 1980s and extended and modernised around 2016. Both levels contain a specialised fit-out with all internal partitions, fixed cabinets, counters, basins and air-conditioning units being owned by the landlord.

“The upper floor contains a generous-sized reception and waiting area, three consulting rooms, offices, a boardroom and staff amenities, and is accessed from a car park on the eastern side of the building. On the lower level are two soundproofed kennel areas, two surgery rooms, laboratory, x-ray and utility rooms, plus a toilet, laundry and storeroom,” Bradley said.

The timber-framed building is constructed with concrete foundations, concrete and timber flooring and predominantly weatherboard exterior walls, and was fitted with a new corrugated-iron roof around 2016.

There are also two storage sheds, along with extensive site development including retaining walls, an outdoor patio and concrete paths.

Coleman said the site was well-presented and had more than 60 metres of high-profile frontage to State Highway 29.

“Positioned on the southern side of the highway, about 100 metres west of the roundabout connecting Cameron and Pyes Pa roads, this is a strategic position at the urban fringe on one of the main arterial routes into Tauranga,” said Coleman.

The property is zoned Residential (9A) under the Tauranga City Plan, with resource consent for its current use.

“The original resource consent, granted in 1981, was varied in 2014 to allow for extension of the building for veterinary hospital activity.

“The site’s zoning and position on the southern city fringe would also support future residential development. The area’s potential is demonstrated by the presence of The Lakes residential subdivision to the south.

“The Tauranga Crossing shopping centre is a short distance to the west, providing a contemporary mall with popular brands, a food court and cinema. Beyond this is Tauriko Business Estate, one of Australasia’s biggest industrial parks with some 200 hectares of net developed lots, while the Greerton village shopping area is a few minutes’ drive to the north,” said Coleman.

Click here for more information on the listing.

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