Bayleys Hawke's Bay presents a rare opportunity to secure a high calibre healthcare investment at 29a and 29b Douglas McLean Avenue in one of Napier's established commercial precincts.
The vendor is offering this prime investment at $4.2m +GST (if any) as it is anchored by a brand new 15 year lease to Central Medical Napier and guaranteed by Omni Health Limited for the initial term, as well as the two 10 year renewal options. The contract rent is already delivering $242,200 +outgoings +GST per annum.
With both Treasury and the BNZ in March of this year, predicting inflation to peak around 3.7% and to continue to stay over the 3% threshold, the savvy investor will recognize the opportunity to buy at the current yield, bank the compounding rental provided by the annual CPI rent reviews and conservatively be sitting on a 6.28% investment the end of 2028.
Further enhancing value for the long-term investor is the potential to claim depreciation for the purpose built improvements, the modern medical fit out, and seismic strengthening via the NZ government’s May 2025 Investment Boost for depreciation relating to commercial property.
The depreciation value is also complemented by the management fee that is built into the rental and can be utilised by an investor to retain a truly hands off investment with guaranteed growth.
With healthcare assets continuing to demonstrate resilience and sustained demand, this property stands out as a premium, easily managed investment opportunity that will ensure growth for years to come.
For further details and property documents, contact Matt Webb from Bayleys Commercial.
