Property fund adds new medical hub, industrial site
First Light Capital Ltd has acquired two properties in Hamilton and Silverdale.
18 Karewa Place, Te Rapa, is a new purpose-built regional medical centre, the latest asset added to an established property fund set up to purchase low-risk commercial real estate assets in the healthcare sector.
With construction completed in early August, this 1841sq m premises on a 3289sq m site on the northern outskirts of Hamilton is
100 per cent leased and home to a range of independent healthcare providers operating in separate yet complimentary fields of the medical recovery sector.
The property has been purchased by First Light Capital to add to its First Light Healthcare Property Fund investment vehicle which has a projected pre-tax cash return of 4 per cent. The hi-tech premises was purchased for $11 million with the transaction settling on August 11.
The fund already includes two healthcare properties at 122 Remuera Rd, Auckland, and
42-50 Totara Ave, New Lynn.
First Light Capital director Toby Hunn said the Te Rapa property geographically diversified the fund’s investment base and reflected the company’s intention to operate an ‘open ended’ fund continuously raising capital as its asset base increased.
“The sizeable Karewa Place medical centre blends in well with surrounding ‘big box’ retail tenancies in the Te Rapa locale, which is considered to be Hamilton’s foremost industrial and retail hubs.
“In close proximity to the west of the property is a Countdown supermarket, Kmart, Placemakers, Harvey Norman and The Base Shopping centre.
“Meanwhile, to the immediate east of Karewa Place is the highly populated residential suburb of Pukete.”
First Light Capital also settled on a large commercial asset under its sister First Light Property Fund entity. The 5439sq m industrial food-grade premises in Silverdale is home to the well-known pie-maker Dad’s Pies and was purchased for $11.775 million.
Dad’s Pies is on a lease running through to 2030 with three further five-year rights of renewal – generating current annual net rental of $631,769.56.
Hunn said the 57 Forge Rd property would allow the fund to maintain its annual net pretax cash dividend of 6 per cent with dividends paid monthly.