Medical premises writes ideal prescription for investment
A purpose-built medical clinic tenanted by one of New Zealand’s largest primary healthcare providers offers buyers a future-ready passive investment opportunity, Bayleys salespeople say.
The architecturally designed premises on 1241sq m of freehold land at 53 Domain Rd, Papamoa, features a new lease to Tend Health, a rapidly expanding health practitioner which uses digital technology to provide online and in-clinic GP appointments.
Bayleys salesperson Brendon Bradley says the property is a premium investment asset in the highly soughtafter medical sector, with a strong tenant covenant that will appeal to selective investors.
“The huge demand for healthcare services locally and the critical nature of this sector represent stability within the rental profile, which has the potential to deliver a consistent and growing revenue stream.
“The tenant’s progressive use of digital technology to offer telehealth and online consultations positions them well to meet evolving patient demand preferences, providing critical resilience to future challenges and income protection for the investor.
“At the same time, the nature of these services is contributing positively to community health outcomes,” he
says. “This business aims to make healthcare more accessible to underrepresented groups, and its ability to achieve this mission adds an attractive ESG (Environmental, Social, Governance) dimension for conscious purchasers,” he says.
Tend Health has a five-year lease to June 2029, with two further three-year renewal rights. The agreement provides for rent reviews to market on the 1 June 2026 and biannually after that. The property returns an annual
net rental of $180,000 plus GST and outgoings.
Bradley is marketing the property by auction scheduled for 1pm, Wednesday April 3, unless sold prior, with Bayleys Tauranga colleague Craig Hilton.
The two-level centre spans 438sq m and has a mix of offices/medical consulting rooms on the ground floor and excellent staff amenities plus a deck on level 1.
The balance of the site includes a fully sealed parking area for 18 vehicles, a 22sq m carport and landscaped grounds.
Hilton says the property is positioned on a major arterial route close to Papamoa’s primary commercial hub.
“Papamoa is the largest suburb neighbouring Tauranga and Mt Maunganui, recently benefitting from infrastructural upgrades including the Tauranga Eastern Link and arterial access to Te Puke in the south and the Mount in the north, increasing business opportunities from more efficient transit,” he says
“The region continues to grow at twice the national average, positioning Papamoa as a developing centre within the country’s Golden Triangle economic engine room.
“Investors will identify the strong locational growth fundamentals and the prime nature of the asset, which features a modern and wellconstructed building with a strong tenant covenant from one of New Zealand’s most exciting and rapidly expanding healthcare organisations.
“It’s an ideal prescription for investors seeking a hands-off passive investment opportunity in a more conservative market environment,” he says.