Aged care homes in Whanga¯rei, Blenheim boast triple net leases
New Zealanders are living longer and the country’s older population is growing proportionately faster than the overall population, which has implications for the provision of healthcare, community services and aged care facilities.
There is ongoing need for different types of aged care facilities to provide older people with accommodation options to suit a broad range of requirements.
A well-presented and largely purpose-built aged care facility offering rest home and hospital-level care in Whangārei has been placed on the market with a long-term triple net lease in place to Heritage Lifecare Ltd, one of New Zealand’s largest providers of residential aged care services.
Puriri Court Lifecare, around 4km north of Whangārei, is one of more than 40 Heritage-run facilities around the country. It was constructed in three stages between 1985-2000. It currently offers 74 rooms, some with en suite bathrooms, and provides general rest home and hospital-level care.
The property for sale comprises three core titles at 202-204 Kamo Rd, which accommodates the care home and associated amenities, and 214 Kamo Rd, a stand-alone residential property. There is also 2795sq m of adjoining development land at 216 Kamo Rd. In total, there is 9592sq m of General Residential-zoned land and the titles will be sold as one lot.
Both the residential property and the development parcel form part of the lease to Heritage Lifecare. Under this arrangement, and following due process, Heritage has the right to expand their operation by developing the vacant site should they require it.
Heritage’s triple net lease is for 30 years from 31 March 2022, with annual rental of $703,905 plus GST and outgoings. There are annual rent reviews to CPI, capped at 4 per cent, and three further rights of renewal of 20 years each.
The property is being marketed by deadline private treaty closing Tuesday April 23, unless sold prior, through Sunil Bhana, Mike Houlker and Henry Napier of Bayleys.
Bhana says the triple net lease provides a truly passive investment opportunity with sound underlying fundamentals and long-term cashflow.
■ The land and buildings associated with a Marlborough aged care facility, with the same fundamental tenure structure with Heritage Lifecare, are also for sale through Bayleys.
Waterlea Lifecare is a 61-bed purpose-built care facility offering full rest home, respite, and dementia care around 2km from Blenheim CBD. It occupies a well-landscaped 5121sq m site zoned Urban Residential.
The property also has a long-term triple net lease to Heritage and from March 31 will return net annual income of $419,012 plus GST, with renewals extending the potential lease term to 2112, and built-in annual rental growth to CPI.
It is for sale via deadline private treaty closing Tuesday April 23, unless sold prior, through Bhana, Houlker and Glenn Dick of Bayleys.