Paeroa property a ‘one stop’ medical centre

5:00 AM Saturday November 28, 2015 Colin Taylor

Aerial view of medical centre for sale at 15 Princes St, Paeroa

The land and buildings housing the only full-service medical centre in the Waikato township of Paeroa has been placed on the market for sale offering new owners a purpose-built complex with established healthcare tenants.

“As the only full-service medical centre in the town, the complex services the local and wider North Waikato community,” says Josh Smith of Bayleys Hamilton who is marketing land and building for sale by auction on December 9 unless it sells earlier by negotiation.  

Smith says the building encompasses doctors’ surgery, dentistry rooms, pharmacy, laboratory, community and mental health services.

“Paeroa Medical centre is centrally located at 15 Princess St, one block back from the CBD within easy walking access to the township and close to the river,’ he says.  

The 610 sq m medical centre complex is built on a 1211 sq m section and generates annual net rental income of $113,000 from six tenants. The property has a rating valuation of $1.36 million.

Smith says the sale of the property represents an attractive opportunity for an investment-focused buyer with Paeroa centrally located between three major centres - Tauranga Hamilton and Auckland.

“This is a thriving medical hub, well positioned in a town currently experiencing strong investment and growth. It is easily accessible for service users, with a car park behind the building for eight vehicles and parking on the street.”

Tenants within the building include, Paeroa Medical Group, Pimenov Dentist, Pathlab Waikato, Paeroa Pharmacy, Waikato District Health Board (WDHB) Mental Health and WDHB Community Health. 

“The variable tenants are compatible within the centre which provides a full-service offering as a ‘one-stop’ onsite medical location. The six leases deliver a broad risk profile with a diversified income source for a new owner looking at the building for investment returns,” says Smith.

True Commercial - 15 Princes St%2c Paeroa - front entrance to medical centre.jpg

Entrance to the medical centre at 15 Princes St, Paeroa. 

Anchor tenant Paeroa Medical Group has a five-year lease commencing in May this year, with two three-year rights of renewal and a final expiry of May 2026. Of the other tenants, one lease has a final expiry date of 2017, one in 2018, one in 2022, one in 2025 and one is under negotiation.

The brick building was constructed more than 20 years ago to a high standard, and has an A-plus seismic rating.

Smith says it has been continually modernised with a full upgrade of the pharmacy currently underway. The centre has multiple consultation rooms, a tea room, reception area and clinical rooms.

“Given the building was constructed more than two decades ago, and its seismic rating is 100 per cent of New Building Standard, this demonstrates how well it has been constructed and maintained. It’s unusual for a building of this age to have this level of rating,” says Smith.

“This is a reputable medical centre with an established clientele. The businesses have been developed to beuser friendly and systems are in place to ensure the premises are well maintained and operate efficiently.”

Smith says Paeroa and surrounding area continues to thrive with a number of developments underway.

These include the development of the former Paeroa Racecourse into a 35 ha residential subdivision which is in the planning stage, and a new ice cream factory at nearby Kerepehi, which is under construction. The factory will create 50 new jobs, growing to an expected 100 jobs in the future. The growth of Auckland is also having a knock-on effect, with a number of businesses looking to move to the Waikato region.

Paeroa is world famous for its L&P soft drink and landmark L&P bottle, where many visitors stop for a photo. It was the winner of the 2012 New Zealand Community of the Year Award.

“Other key attractions accessible from Paeroa are the once gold-rich Karangahake Gorge and its hugely popular cycle trail, Smith says.