KEY POINTS:
Calan Healthcare Properties Trust is creating one of country's largest private hospital, medical and clinical complexes at Greenlane.
A five-level medical centre and clinical building are now under construction and will be called Ascot Central. It is being constructed on former Auckland Racing Club land at 7 Elllerslie Racecourse Drive, adjacent to the Calan-owned Ascot Hospital which opened in 2003.
The design of the complex is based on Melbourne's Epworth Eastern Hospital and Medical Centre completed by Calan in 2005.
The project has had an interesting beginning. It was started by Calan as an office and medical suite complex but sold to McConnell Property last year for $3.9 million because there wasn't enough leasing interest at the time.
Calan Healthcare Properties Trust recently agreed to buy back the development for about $22 million when it is completed next year, after it secured early unconditional lease agreements for 1 1/2 lf floors from mainly medical tenants, including Fertility Associates. Lease terms range up to 15 years.
Colliers International leasing manager James MacCormick and broker Vanessa Richardson are leasing Ascot Central's remaining three floors.
David Carr, manager of Calan Healthcare Properties, says acquiring the completed development made sense based on the current levels of lease commitment, in addition to the interest for space from other potential tenants.
The project, planned for completion in the first quarter of next year, will have 4750 sq m of net lettable area, with floorplates ranging from 840 sq m to 969 sq m. The energy efficient building, with two large lifts and contemporary materials and finishes, will have a centralised core. The top floor will include a 105 sq m balcony and have unobstructed views over the racecourse.
Carr says the trust is applying for a green star rating for the building and is confident its core design will meet the Green Building Councils strict criteria. "We are determined to give tenants an above-standard workplace with the emphasis on sustainable development with environmentally friendly materials and energy efficiency building systems that will reduce operating costs."
The flexible nature of the Peddle Thorp Architects design allows for suites of 100 sq m to suit two consultants up to 1500 sq m for bigger practices. MacCormick says the suites can be built to tenants' specifications or their design requirements. Calan can help tenants decide what space they need and assist with design and implementation. The building will incorporate a lobby on the ground floor with patient drop-off facilities.
Dr Richard Fisher of Fertility Associates says the decision to lease space at Ascot Central is directly linked with the ability of Calan to meet its stringent operational requirements. Fertility Associates was also attracted by the quality and attractiveness of the building and its prime location.
Carr says the adjacent Ascot Hospital provides significant health care synergies and integration opportunities for specialist tenants. Along with state-of-the-art operating theatres, Ascot Hospital has a comprehensive range of diagnostic services, specialist support and services including radiology, a pharmacy and a cafe.
Dr Andrew Wong, Mercy Ascot chief executive says there has recently been demand that can't be met for specialist consulting rooms at Ascot Hospital. The hospital has 100 per cent occupancy and Ascot Central offers many specialists and consultants a viable alternative. Wong says the adjacent Ascot Hospital is a world-class facility. The quality of care provided by Mercy Ascot and the growth of private healthcare in New Zealand resulted in a 15-bed post-operative ward being added last year.
He says the Ascot Central development is a key component in satisfying growth by creating one of the largest private, fully integrated medical, consulting and surgical facilities in New Zealand.
MacCormick says the development is ideal for medical specialists wanting to become part of new premises that will be designed specifically to cater for their needs. Many specialists are stuck in older villas or houses struggling to cope with facilities that don't suit their requirements.
"Ascot Central is a prime opportunity to lease premises in a building of similar standard to Ascot Hospital in what is fast becoming a recognised medical location that will surpass Remuera Road," says MacCormick.
"Medical specialists are no different from office tenants in that they want the style, sophistication and amenities of quality buildings with ample parking in park-like surroundings. The development is close to the affluent eastern suburbs and all other central and southern areas, with ease of access for tenants, staff and patients."
Car parking at Ascot Central is allocated at a ratio of one car park per 20 sq m of space. Fifty two parks are on site with an additional 176 available on an adjoining site. The lease on these runs for more than 30 years.
The development has road frontage to Greenlane East, Racecourse Drive and Ascot Avenue and naming rights are available for the building.
The 3000 sq m site is land originally owned by the Auckland Racing Club. It was the last freehold site available in the Ascot precinct and sits between the Novotel Hotel and Ascot Hospital.
Other recent developments in the area include Manson Developments $45 million Ascot Office Park next to the Southern Motorway.
Ascot Central is at the gateway to Ellerslie Racecourse in an area noted for good amenities, including two cafes, a gym, a restaurant, and conference facilities in the Novotel and Ibis Hotels and the wider recreational facilities at the racecourse.
The location is close to Auckland's CBD. It is 150 metres east of the Greenlane East motorway ramp and the northern and southern motorways.
Major transport projects under way in the area include the Southern Motorway Greenlane interchange upgrade and the refurbishment of the Greenlane railway station.
