Rotorua aged-care sale with long lease
The land and buildings of an aged-care facility in Rotorua are for sale, offering the opportunity to acquire an asset with a steady rental stream and land available for future development.
32 Taui St, Ngongotaha, sits on the Rotorua lakefront of Parawai Bay and has 13 separate living units providing rest home, hospital and dementia levels of care to a maximum 81 residents. There are administration and facilities areas at the entrance to the complex.
The total landholding spans
13,355sq m and approximately
3000sq m is available for development or subdivision meaning the operations could be expanded.
Known as The CARE Village, it was purpose-built in 2017. The tenant, Rotorua Continuing Care Trust, is an established operator in this field and has created an innovative village environment for the residents.
The tenant has a long-term view for the property and its current
12-year lease runs until 2029 with two further rights of renewal in place for six years each. Total annual rental income is $810,397 plus GST.
Colliers brokers Simon Clark and Mark Rendell are marketing the property via deadline private treaty closing 4pm, Thursday May 9, unless sold prior.
Resident accommodation is designed as a modern way of care by offering secure village living, as inspired by the De Hogeweyk Village in the Netherlands.
Accommodation is divided into 13 living houses, each with its own kitchen, lounge, laundry and
communal bathroom and toilets. Ten of the houses have six bedrooms, while the balance have seven bedrooms.
Clark says the opportunity to secure a property with a lengthy lease to a highly respected operator will be appealing to prospective purchasers.
“Comprising immaculate, thoughtfully designed, easy-care buildings and grounds, this unique investment will attract a wide range of investors who see the growing demand for these types of facilities and the future potential for capital growth in this sector.
“Aside from the length of the lease, there are CPI rent reviews every two years and future market rent reviews on renewal, providing built-in rental growth.”
The balance of the site not covered by improvements is mostly laid in areas of lawn and gardens planted with trees and shrubs. The site is secured with perimeter fencing and there are 46 carparks.
Rendell says the location is appealing for its residents.
“Sitting on the lakefront in the village of Ngongotaha, the property is only 10km west of Rotorua and offers easy access to SH5 leading to Hamilton and Auckland. Tauranga and Mt Maunganui can be reached via SH36.
“The site is above Lake Rotorua’s 100-year flood level and offers expansive views of the lake, neighbouring hills and countryside. It’s within walking distance of the local shops.”