INDEPENDENT NEWS

Underlying zoning elevates rest home property in the market

Published: Mon 6 Sep 2021 09:33 AM
A well-returning classic passive investment property on a large site in Papakura, just 700 metres from the town centre and with preferential zoning for future residential redevelopment, will go under the hammer next month.
Situated within an established residential neighbourhood, the freehold 1,300-square metre site at 25 Coles Crescent supports a 1950s weatherboard 20-room rest home, with purpose-built extensions carried out in 1990 and 2000.
Operating as Janelle Rest Home and licensed for 21 residents, the property has a new 10-year lease with three 10-year rights of renewal to be exercised.
With reliably strong occupancy rates, the rest home is run under a family-style care model in homely residential surroundings and has been under new and experienced ownership/management since June this year.
Piyush Kumar and Peter Migounoff of Bayleys Papakura are marketing the property which will be auctioned at 12pm, Tuesday 14th September, unless sold prior.
Kumar said that as a bottom-drawer investment proposition, the property’s full net lease, returning $110,000 + GST and outgoings, with reviews to CPI every two years, is appealing.
“That rental growth will undoubtedly provide confidence, meaning the property will resonate with a wide range of investors, and keep the bank happy,” he said.
“This rest home’s boutique size and service offering is very popular, and there is proven demand for this more-traditional aged-care model, provided within a typical residential neighbourhood.
“However, the property’s zoning signals future opportunity and is likely to broaden its investment appeal beyond traditional ‘mum and dad’ investors.”
Papakura has metropolitan town centre status and has been identified as a residential growth node under the Unitary Plan.
“With guaranteed high demand for residential development land in the future, this property’s underlying Residential - Mixed Housing Urban zoning means it’s an investment option with long-run advantages,” said Kumar.
“Land values in Papakura and Takanini have skyrocketed in recent years, and there are several new residential developments going up nearby offering apartments and terraced housing which is the way forward for land with higher-density zoning.”
The 625-square metre rest home has 19 single rooms plus one double room, and all have ensuites or shared ensuites. There are two dining rooms, two living rooms, a functional generous kitchen and heat pumps and heaters in every room.
The property is located within walking distance of Papakura’s main shopping area and is in close proximity to the southern motorway.
At the 2018 Census there were 57,636 usual residents in Papakura, an increase of 26.3 percent since the 2013 Census, and 10.5 percent of residents were 65 years or older.
Papakura’s population growth was well ahead of wider Auckland which saw an overall 11 percent increase.
“These fundamentals underpin the investment credentials of this property which offers steady returns over the lifetime of the existing lease structure, with the upside of compounding underlying land value,” said Kumar.
Click here for more information on the listing.
Bayleys
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
Contact Bayleys Realty Group
Phone:
09 375 6868
Media Contact:
Scott.Cordes@bayleys.co.nz

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