Holiday hotspot commercial property placed on the market

Media Release

10.6.2019

Holiday hotspot multi-tenanted commercial property placed on the market for sale

A modern, multi-tenanted corner property in the middle of Whitianga's commercial centre on the main street has been placed on the market.

Situated on the corner of Albert and Lee Streets in the Coromandel township, the property has three tenants in a 260 square metre building, constructed in the 1990s, on a 313 square metre freehold site.

Tides cafe, a tourism business Lost Springs - which sublets the main part of the tenancy to insurance broking company Aon - and Tech Solutions, tenant the property at 47 Albert Street, paying total annual net rent of $69,221 plus GST.

The property has a Thames Coromandel District Council rating valuation of

$900,000, and is being marketed for sale at auction at noon on June 27 by Bayleys Hamilton. Salespeople Josh Smith said the property ticked all the boxes for property investment – being a modern building, in a commercial location and having multiple tenancies…. providing split risk for any new owner.

Designed to maximise site coverage and taking advantage of its prominent corner location, the property is accessed by a service lane giving rear access to all three tenancies, allowing ease of loading and unloading of goods. Mr Smith said.

“Split into three tenancies, the biggest floorplate on the corner is occupied by Tides cafe and gets exposure from all angles. The two smaller tenancies have their entrances off Albert and Lee Streets,” Mr Smith.

Tides is a popular café offering breakfast, lunches, morning and afternoon teas in Whitianga's competitive hospitality industry. It is recognised by locals and travellers for its friendly atmosphere.

The cafe signed a lease in November 1999 that was varied this year to include two five year rights of renewal, finally expiring in 2032 at annual rent of $31,989 + GST. The cafe pays 45 percent of the building's operating expenses.

The Lost Springs Te Wai Ngaro business operates geothermal hot springs, a day spa and a restaurant. It only uses the front window of its tenancy for advertising - capitalising on the road-front location and the busy street to attract business.

It sublets the office space in the tenancy to insurance broking and risk management company Aon. Aon has prominent signage on the building - which is one of the 65 offices it has around the country employing a total of 950 staff.

The lease sits with Lost Springs and a two-year term was signed in 2014 with three two-year rights of renewal, potentially finally expiring in February 2022, and generating annual rental of $21,632 plus GST. The company pays 40 percent of the building's operating expenses.

Tech solutions is a niche outlet providing service and accessories for mobile phones, computers and tablets. One of two stores operating out of the head office in Auckland, this branch has recognised the need to be in Whitianga to provide a service to both locals and tourists.

The tech’ company signed a four-year lease in November 2018 with three further two-year rights of renewal, potentially finally expiring in November 2026, and pays annual rent of $15,000. It also contributes 15 percent of the property's operating expenses.

Mr Smith said the tidy, well-presented property was zoned commercial (8A)

in the Thames Coromandel District Council plan.

Whitianga has a permanent population of 4000 and is the fastest growing town on the eastern seaboard of the Coromandel Peninsula. The Thames Coromandel District Council recognised Whitianga as its ‘trophy town’ and completely redeveloped Albert Street in 2018, and is now investing in upgrading the town's green spaces, parks and playgrounds.

Whitianga Waterways development is the largest canal housing project in New Zealand with 700 canal-front residential sections, airfield and other lots that will integrate waterfront retail, tourism accommodation, apartments and other facilities when completed. The project has brought a large number of permanent residents to the town.

Mr Smith said the tenancies are suitable for a wide range of activities and the building would suit a buyer who can add it to an existing property portfolio.

ends

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