19.8.2019
Provincial retail and industrial property portfolio placed on the market for sale
A substantial provincial city commercial and industrial property portfolio - featuring a block of high street shops, a
vehicle testing station, and an industrial hub - has been placed on the market for sale.
The three properties are based at various locations across Masterton in the Wairarapa and are being marketed for sale
individually by tender through Bayleys Wairarapa, with the tender process for each property closing at 2pm on September
19.
Bayleys Wairarapa salesperson Steve McColl said each of the properties offered a totally different tenancy mix from the
others.
“There is considerable diversity within these three listings,” Mr McColl said, “offering multiple risk-appetite and
development opportunities for the full spectrum of buyers in the commercial property sector – ranging from
owner/occupiers and passive investors through to developers,” Mr McColl said.
Heading the list is a substantial 4,592 square metre industrial warehousing and factory complex at 32 Bentley Street
spread across three titles, and sustaining some 2,056 square metres of high-stud buildings. The land is zoned for
industrial use under the Masterton District Council plan.
“The three modern units are built around a recently-sealed yard, and are fully tenanted with six lease agreements –
generating a net income of $94,500 plus GST per annum,” Mr McColl said.
“Additionally, the block adjoins some 750 square metres of currently bare land which could sustain either the addition
of another warehousing unit with access directly off Bentley Street.”
Anchor tenant at the property is national water services infrastructure management company City Care. Other tenants
within the property include a gymnasium and fitness centre, an event equipment hireage firm, and a metalwork engineering
shop.
Next up in the portfolio is the land and purpose-built buildings housing the Masterton location of nationwide motor
vehicle testing agency VTNZ at 157 Ngaumutawa Road.
VTNZ is currently on a lease running through to 2021 with two further three-year rights of renewal currently generating
a net rental of $80,700 plus GST per annum. VTNZ is New Zealand’s biggest vehicle assessment network – conducting
inspections on more than 1.5 million cars, trucks, trailers and caravans annually, in addition to undertaking more than
200,000 practical driver tests.
Operating in New Zealand since 1994, VTNZ services both private and commercial vehicle users. The Masterton branch is
one of 82 VTNZ locations within New Zealand.
Mr McColl said tenant VTNZ Masterton benefitted from the site’s prominent exposure to the State Highway 2 bypass. Zoned
for industrial use, the VTNZ site is located next to Masterton’s big box retail and industrial precinct.
“The purpose-built design of the 2,812 square metre property sustains easy access off and entry onto, the busy
Ngaumutawa Road – with the orientation of the premises allowing customer’s vehicular traffic to flow smoothly in to and
out of the VTNZ testing centre workshop. This ensures maximum efficiency for both VTNZ’s mechanics, and customers,” he
said.
Rounding out the properties is the one of the most well-known retail buildings within Masterton’s central business
district – five shops housed in what was formerly known as the State Theatre at 25 – 33 Queen Street. The two-storey
building sits on some 1,161 square metres of freehold
commercial-zoned land.
“The art deco State Theatre premises has been transformed from what was originally the city’s entertainment centre
hosting concerts, big band dances, movie screenings and social gatherings back in the post-war decades, to now house
retail sites such as a hairdressing salon, two financial services companies, and a tattoo studio.
“In addition, the property has two residential tenancies on the first floor. All of the tenancies have vehicle parking
and access from the rear of the building off Cricket Street. Combined, the seven tenancies generate a net rental income
of $65,000 per annum,” Mr McColl said.
“Until recently, the central auditorium space within the State Theatre building was used as a boutique movie cinema.
However, with the tenant recently vacating the space and stripping it back to its industrial ‘bones’, there is the
opportunity for an entrepreneurial developer to re-establish the location along the lines of a boutique storage unit
complex.
“With access from a 3.4 metre roller door from the rear of the property, this concept would deliver the only storage
unit facility in the centre of the city.
“Ample customer parking immediately outside the State Theatre building ensures the shop tenancy customers have easy
access to the various retailers.”
ends