Cash injection sought for medical centre

Cash injection sought for medical centre development

A block of land close to Tauranga’s city centre that took almost a decade to amalgamate, is now up for sale - with consents in place for the development a large medical centre.

The 6483 square metre site is directly opposite Tauranga Hospital. Original concept plans for a multi-specialty medical care centre - including general anesthetic day surgery facilities - were prepared for a resource consent granted in April 2008.

The plans encompass a five-level commercial building comprising three large floors designed specifically for medically aligned tenants, of approximately 6174 square metres, together with two levels of basement car parking for 238 cars.

The property is being marketed by Brendon Bradley and Lynn Bradley of Bayleys Tauranga through a tender process closing on August 20. Brendon Bradley says the property’s current owner now feels it is time for someone else to carry the project forward.

Brendon Bradley said a second set of concept plans have since been commissioned from specialist medical architects Chow Hill. These plans proposed either a two stage or a three stage project.

“Each stage provides for three levels of building that on completion will result in a total floor area of 7111 square metres plus underground parking. The vendors say that these plans have been sighted by Tauranga City Council, which has indicated that a variation to the existing resource consent would be required for this proposal to proceed,” Mr Bradley explained.

The options for both concepts include the sale of space through a strata title process or for tenants to lease space in the complex directly from the development company. Indicative leasing rates for the proposed medical tenancies have been in the $350 to $390 per square metre range, said Mr Bradley.

“The objective of MedPark, as it was named by the developers, was to create a hub for the medical community in Tauranga that would house a number of independent medical practices offering primary care and specialty medical services. In addition, there would be a variety of ancillary services such as occupational therapy, physiotherapy, pharmacy, laboratory and imaging,” he said.

“Back in 2001, the vendors had a vision to provide a high quality private medical centre for the people of Tauranga and Mount Maunganui. They formed a company with the objective of finding a convenient high profile site to establish this facility. They identified prime land directly across the road from the Tauranga Public Hospital as the most logical location and during the next seven years acquired 11 titles that secured a strategic Cameron Road block.”

Mr Bradley said the position of the property directly opposite the hospital was ideal for medical related practices - suiting many specialists who could service private patients in their rooms, then walk over to the hospital to treat those in public wards.

“The site presents an outstanding opportunity to capitalise on the ageing of the Bay of Plenty population and the associated demand for high end senior healthcare. Although the practices would be separately operated, the aim was that each would come together to achieve one collaborative goal – to provide excellence in healthcare for the Tauranga region,” he said.

Mr Bradley says that while the Avenue Property Developments Limited company was formed specifically for this purpose and was now subsequently selling the site, the vision of the principals could easily transfer to any new purchaser.

“This company has done all the hard work and has provided a platform for the complex to proceed and succeed. It is now at the stage where it requires both medical expertise and significant financing to complete,” Mr Bradley said.

“This site is the largest clear landholding currently fronting the main arterial route within close proximity of Tauranga’s CBD, and I doubt if there will be another opportunity to develop something of this size in a high profile location like this again.”

The property has a current holding income from a short term carparking tenancy to Wilson Parking. Mr Bradley says it also offered numerous options for other developments - such as an education complex or visitor accommodation facilities, subject to obtaining the appropriate resource consent. Tenders for the land purchase close on August 20.

ENDS

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