Marlborough Express - Weekend Express
Trio of regional rest homes are on the market
A trio of rest homes, all with long-term leases to one of New Zealand’s largest private providers of residential aged care services, are for sale in popular regional retirement locations.
The aged-care asset class, for facilities under proven management, is proactively being scoped by investors looking for opportunities in the wider healthcare sector.
The three well-performing Heritage Lifecare aged-care facilities in Blenheim, Palmerston North and Te Puke are for sale through Bayleys.
The Waterlea Lifecare at 50 McLauchlan St, Springlands, Blenheim, features a 61-bed care facility offering full rest home, respite and dementia care.
The medium-scale purpose-built facility sits on a 5121m² site zoned urban residential, about 2km from the town’s CBD.
Waterlea Lifecare returns net annual income of $402,896 plus GST, on a 30-year triple net lease in place to Heritage Lifecare, starting in March 2022, with renewals extending the potential lease term out to 2112, and built-in rental growth.
Bayleys Marlborough director Glenn Dick said Heritage Lifecare was one of New Zealand’s largest private providers of residential aged care services, with a 40-strong network around the country.
“The Waterlea Lifecare property presents a private investor with an affordable step into an institutional grade asset,” Dick said.
“The triple net lease structure is distinctly superior to the majority of standard commercial leases given the landlord is insulated from all costs and maintenance of the property to the maximum extent permitted by law.”
Two other regional Heritage Lifecare-leased properties are also for sale
through Bayleys – either individually or combined – with the same fundamental lease structures.
Karina Lifecare at 11 to 15 Karina Terrace in Roslyn, Palmerston North, comprises a 37-bed aged care facility an elevated 3485m² site.
The property also has a 30-year triple net lease with renewals to 2112, and returns a net annual income of $104,832 plus GST.
In Te Puke, Carter House Lifecare at 69 Moehau St is a medium-scale 65-bed care
complex providing full rest home care services, sited on 12,761m² of land, and returning current annual net income of $566,592 plus GST.
Sunil Bhana, from Bayleys Auckland’s industrial sales and leasing team, said that the three Lifecare assets for sale were all located in popular retirement locations drawing from an aging surrounding catchment.
“Institutional assets of this calibre, underpinned by high levels of government funding, must appeal to astute investors seeking a premium investment positioned in a healthcare sector experiencing increasing pressure from New Zealand’s rapidly ageing population,” Bhana said.
“These properties not only have strong, proven tenant covenant and exceptionally robust long leases, they are located on large residentially zoned sites underpinned by rising land values which provides intrinsic long-term value.”