Napier medical investment offers long-term income

Napier medical centre backed by a long lease and a national healthcare operator’s guarantee is being offered to market, offering investors inflation-linked rental reviews and exposure to primary healthcare as an ageing population supports long-term demand.

Napier medical property offered by deadline sale

Bayleys broker Matt Webb is marketing the property at 29A and 29B Douglas McLean Avenue in Marewa by deadline sale, closing at 4:00 pm on Thursday, 26 November 2026 (unless sold prior).

Healthcare tenant provides $251,198 net annual income

Fully leased to Central Medical Napier and guaranteed by Omni Health, the property will return net annual rental income of $251,198 plus GST from December 2026.

Lease and renewals could extend occupation to 2060

The 15-year initial lease commenced in December 2025, with two further 10-year renewal rights providing potential occupation through to 2060.

Medical centre and apartment sit within one lease

Webb says the offering combines an essential community service with a long lease and defined mechanisms for rental growth.

“An established medical practice gives purchasers an existing healthcare use to assess alongside the lease. The centre’s refurbished premises, neighbourhood location and adjacent parking are practical attributes that support its role in serving the local community.

“The lease also includes a refurbished two-bedroom apartment alongside the medical centre. Both components sit within one lease, so the residential accommodation forms part of the existing income arrangement without requiring the purchaser to manage a separate residential tenancy.

Ageing population supports primary healthcare demand

An ageing population is strengthening long-term demand for primary healthcare close to home. Statistics New Zealand projects that approximately one million New Zealanders will be aged 65 and over by 2028, and the Ministry of Health identifies this demographic shift as a driver of increasing service needs.

That trend has practical implications for property: providers need premises that accommodate contemporary clinical services and are within easy reach of the communities they serve.

Refurbished medical centre and apartment

The property comprises approximately 570sqm of improvements, including a 480sqm medical centre and 90sqm apartment.

Four freehold titles with a 70 percent NBS rating

Held across four freehold titles on a 480sqm (more or less) site, the property has been refurbished and carries a seismic assessment of 70 percent of New Building Standard.

Marewa location offers adjacent public parking

Its corner position near Kennedy Road provides access from surrounding residential neighbourhoods, with free council parking directly adjacent. Suburban Commercial zoning supports its established role within Marewa’s local service network.

CPI and market reviews support rental growth

Webb says investors assessing long leases should consider how the review provisions provide opportunities for rental growth throughout the ownership period.

“Annual CPI reviews provide a regular mechanism to respond to inflation, while five-yearly market reviews allow rent to be reassessed against prevailing conditions. The greater of the CPI and market adjustments applies when reviews coincide.

“Those provisions give purchasers a clear basis for evaluating how the income may increase beyond the initial return.”

He says the investment should be assessed on how well the premises support the tenant’s ongoing operations.
“The refurbishment, surrounding catchment and adjacent public parking are relevant to the practice’s day-to-day use. Alongside the lease terms, those practical attributes help purchasers assess the property’s suitability as a long-term home for primary healthcare.”

“The initial term extends to 2040, allowing an investor to take a long view of the asset while retaining regular opportunities for rental reassessment. That balance between lease duration and inflation-protected income is central to this opportunity.”