 Asset Class: | Medical |
 Price: | $ 2218493 |
 Net Yield: | 7.30 % |
Net Yield - including solar strategy: | % |
 Property Market Status: | On Market |
This is a unique opportunity to secure the land and buildings of this trophy medical facility in the West Coast region, anchored by a long-term lease to a strong tenant covenant with rent upside potential.<br><br><br>This high quality and modern building completed in mid-2023, was purpose built for the Buller Health Trust and their future needs in the district. Excellent onsite carparking is provided by 26 individual spaces. <br><br><br>From the Kaiwatiri Health Website: <br><i>Buller Health Trust are delighted to advise that we have relocated our Coast Medical and Westport Dental practices to our new integrated health facility on Bentham Street; and we introduce our new healthcare identity, “Kawatiri Health. Kawatiri Health offers a comprehensive range of medical and dental services. Our expanded facility enables us to provide an even wider range of healthcare options, all under one roof. The Trust acknowledges the need to grow and extend our services in order to be sustainable and will continue to explore options to enhance the services currently available.</i><br><br>The property is situated in a highprofile position having frontage to Bentham Street however also good visibility to Palmerton Street (State Highway 67), one of the principal accessways to the Westport township.<br><br>The Buller Health Trust lease the property for a significant 20-year term commencing in October 2023, with a strong 18.50 year weighted remaining lease term. With annual CPI reviews (minimum 2.50%) and rent upside (based on independent valuation) for the three yearly market reviews, growth appreciation is positive.<br><br>The onsite facility is occupied by Kawatiri Health, which operates at five days a week offering General Practice medical and Dental Services. The campus also hosts audiology services and physiotherapy practices permanently onsite. Outside of Te Whatu Ora Buller Health services, this is the only medical centre and independent offering in the wider area.<br><br>This is a bottom drawer asset, with substantial remaining lease term to a high-quality tenant covenant. In addition is rent growth potential; bolstering the underlying return overtime.
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Westport is located in the Northern West Coast - Tasman region.<br><br>It is ideally situated between the Abel Tasman in the north and the Fox and Franz Josef Glaciers in the south. The West Coast is one of the main tourism regions due to its untamed natural wilderness. <br><br><br>Westport is four hours drive from Christchurch via Lewis Pass, and three hours from Nelson, Blenheim and Picton, it is in the Buller District, covering Westport, Karamea, Reefton and Inangahua Junction.<br><br><br>Kawatiri Health is well located at one of the entrances to the township, off Palmerston Street (State Highway 67), which links with the town centre to the north.<br>Westport is served by a range of day-to-day amenities, professional services, and industrial offerings. <br><br><br>Outside of Te Whatu Ora Buller Health, this is the only medical centre in Westport and the surrounding region
Additional Location Information FileThe Buller Health Trust was first set up to purchase the Westport Dental Clinic, which up until 1997 had been privately owned. At the time the owners wished to sell the practice but could not find a buyer and had decided to close.<br><br>In 2020 the only independent GP practice in the Buller was set to close, at which point the Trustees of BHT again recognised the importance to the community of retaining an independent GP practice in the district and purchased Coast Medical.<br><br>The purpose (mission) of the Buller Health Trust is:<br><br>• The preservation of public health and wellbeing within the Buller District.<br>• To establish, maintain, control, aid or carry on medical and dental clinics for the object of conserving public health or wellbeing of the community or tending to the sick or injured.<br>• To establish, maintain, control and aid any purpose of public health or wellbeing or improve or develop such public amenities.<br><br>The Trust currently provides both dental and medical healthcare services to the Buller District, under the trading name of Kawatiri Health.
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Note - These properties are not local but are medical facilities in similar regional NZ towns. 1 Mueller Street, Waihi - $180,000 p.a, $443 / sqm 6.67% yield (Medical Centre) 9-11 James Street, Whakatane - $98,694 p.a, $241 / sqm, 6.17% yield (Medical Centre) 99 Broadway, Matamata - $120,845 p.a, $343 / sqm, 5.81% Yield (Hearing Specialist)
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<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Purpose built medical facility completed in 2023</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Quality tenant covenant, the only independent medical offering outside of Te Whatu Ora Buller Health</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Annual CPI rent reviews (minimum 2.50%) and Market Reviews Three (3) yearly</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Net income $161,950 + GST + OPEX</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Significant 18.50 year remaining WALT</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Offering a 7.3% Net Yield at Rethink negotiated price</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Floor area 744 sqm (approx.)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Strong demand and well received in Buller region</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Excellent onsite carparking with 26 spaces</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">The land is zoned Commercial under the Operative Buller District Plan. Under the proposed Te Tai o Poutini Plan (TTPP) the site is zoned ‘Town Centre’</span></p></li></ul>
