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Modernised healthcare centre for sale has property investors taking a patient look

The premises formerly known as the Paeroa Medical centre is centrally located at 15 Princes Street in Paeroa - one block back from the town’s central business district. When operating under its previous format, the building encompassed amenities let by the likes of the Waikato District Health Board, a doctors’ surgery, dentistry rooms, pharmacy laboratory, community, and mental health services – servicing both the local town and wider North Waikato community.

Last year, the building was totally refurbished - with new paint, carpeting, lighting and customer amenities installed to create a fresh-looking single-storey brick structure with an A+ new building standards rating of 100 percent.

Originally constructed in the late 1990s, the building has a carpark behind it with space for eight vehicles, and additional customer car parking immediately in front on Princes Street. The location is zoned commercial 8A under the Hauraki District Council plan.

Now predominantly vacant, the 610 square metre building sitting on some 1,211 square metres of freehold land has been placed on the market for sale at auction on March 18 through Bayleys Hamilton. Salesperson Josh Smith said the vendor would also consider leasing out individual space within the new look centre. Naming rights to the site were also potentially available for new tenants or owner/operators looking to secure space in the premises.

Dental technician and audio testing clinic Clinico Denture & Hearing has secured the first clinical rooms within the property – signing up to a four-year lease running through to 2025 with one further four-year right of renewal, generating annual rental of $36,680.

The vendor has also underwritten the long-term viability of the premises – also taking on a four-year lease running through to 2025 with one further four-year right of renewal, delivering a total rental of $175,000 per annum.

“With an inviting street-facing front reception area, retail space previously occupied by the pharmacy, an employee kitchen and lunchroom space, and multiple bathroom amenities, the building is set to enter a new era,” Smith said.

“The new look and feel both inside and outside the premises barely resemble its former existence – with a far more efficient use of space throughout while still maintaining the core infrastructure lighting, power, reception area, and client car parking.

“While Paeroa is well serviced by a medical hub, there is capacity for a non-competing one-stop healthcare facility to also service the town’s populous. Shifting the previous focus from a medical centre to a broader healthcare hub expands the potential tenancy mix to include such service providers as homeopaths, naturopaths, physiotherapists, optometrists, podiatrists, osteopaths, or beauty therapy treatment operator,” he said.

In its new configuration, the healthcare hub at 15 Princes Street now has more than 20 consulting rooms ranging in size from 10 square metres up to 30 square metres. Smith said that from a leasing perspective, new lease terms on refurbished rooms and share services within the premises would be negotiated dependent on the amount of space required, and length of tenancy.

“There is the ‘blank canvas’ opportunity for any new tenant to take one or multiple consulting rooms depending on the size and nature of their business. It also allows for an owner/occupier to take up residency within the practice premises,” Smith said.

With a population of 6,114 people according to Statistics New Zealand’s 2018 figures, Paeroa is just a short drive from the townships of Waihi, Ngatea and Thames. The town has prospered economically over the past two decades thanks to its profile as an antiques and collectibles retail speciality destination, and the opening and subsequent phenomenal growth of the Hauraki Rail Trail cycle way leading north, south and east from the town.

“On that basis, not only would a new healthcare centre have a catchment pool of more than 20,000 people within a 30-minute drive, it would also be appealing for healthcare practitioners in those towns to consider the benefits of being associated with an amalgamated premises of like-minded professionals,” Smith said.

“Additionally, a sector of Paeroa’s growing population, namely retirees, is in the age demographic which is classified as being high users of healthcare and medical services.”

Paeroa’s over-60s population has been increasing steadily lately as incoming residents move into the 250-unit Longridge Country Estate retirement village which includes its own community centre, café, recreational amenities, and an additional 60-bed residential care facility. With units being completed and sold off on a rolling basis over the coming years, Longridge will eventually grow the town’s population by 400 people – sustaining substantial employment opportunities for nursing and administrative staff.

Concurrently, the new owners of Paeroa Racecourse have announced plans to rejuvenate the 33.5-hectare site with a focus on community activities and the potential for a commercial hub, function venue, child care centre, and new housing – all of which would generate long-term employment opportunities for the area.

Hauraki District mayor Toby Adams is bullish about Paeroa’s economic prosperity, saying: 'It's still very early days and there is still a formal process to be followed for re-zoning and consenting but I'm allowing myself to feel a little bit excited about this fresh start (for the former racecourse).'

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