Medical facilities in Richmond and Nelson are being presented to the market for sale and offer investors the opportunity to acquire assets with strong levels of rental income in a rapidly growing area in the South Island.
There are two multi-storey complexes in Richmond. One is located at 349-355 Lower Queen Street and is home to 10 established tenants in a 2,498sq m building on a 3,828sq m site.
The other sits in the neighbouring property at 341-343 Lower Queen Street and houses five tenants in a 960sq m building on a landholding that measures 2,016sq m.
The total annual rental income from these two facilities is $1,034,212 plus GST. The properties benefit from significant road exposure and are highly visible to passing traffic.
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Lower Queen Street is the gateway road linking Richmond’s CBD and commercial and residential areas. Richmond is about 15 minutes from the centre of Nelson.
There is also 2,024sq m of development land available at 337-339 Lower Queen Street that is held in two titles and is home to four residential dwellings and provides additional income.
The facility in Nelson, known as Health@132, is located on a high-profile corner section at 132 Collingwood Street and has 1,800sq m of total net lettable area on a 2,559sq m site.
The properties can be purchased individually or in one line, meaning there is a broad array of opportunities available to interested buyers who can capitalise on the chance to acquire modern medical buildings in busy locations.
Colliers Nelson Brokers Geoff Faulkner and Brad Allam have been appointed to market the properties for sale via deadline private treaty closing at 3pm on Friday 15 August, unless sold prior.
349-355 Lower Queen Street was built in 2011 and its tenants include hearing specialists, a general practice, a blood testing facility, and a dentist, among others. The net annual rental income from the property is $686,697 plus GST.
341-343 Lower Queen Street is a contemporary building that was constructed in 2022 and houses dietitians, a day surgery, and a laser clinic, alongside other medical services. The net annual rental income from the property is $347,515 plus GST.
The facility at 132 Collingwood Street was modernised and upgraded in 2008 and is tenanted by general practitioners, dental specialists, chiropractic services, physiotherapists, a pharmacy, and an on-site cafe, among other occupants. It provides $455,480 plus GST in net annual rental income.
Faulkner, Director at Colliers Nelson, says the properties provide steady rental streams underpinned by longstanding tenants that are ideally suited to their respective locations.
“The tenants in the facilities in Richmond are incredibly sticky and all benefit from being part of a broader medical precinct that provides outstanding services for the local community,” Faulkner says.
“The complex in Nelson has proven itself as a reliable one-stop shop for locals and has an outstanding reputation that is well-known in the area.
“The medical tenants in all of these locations are very busy, which positively impacts the supporting tenancies.”
Allam, Sales and Leasing Broker at Colliers Nelson, says the medical facilities in Richmond are located in one of New Zealand’s key growth areas that has seen a boom in residential and commercial development.
“There has been extensive population growth in Richmond during the past decade and the Tasman region grew by 10.3 per cent between 2018 and 2023, according to data from the most recent Census,” Allam says.
“The development land that is available on Lower Queen Street represents a key opportunity for a buyer to acquire a stake in an area that is rapidly being built out with few remaining sections available nearby.
“This is a high-quality offering.”
- Supplied by Colliers
