Gym sites have investors pumped

The fitness centres are both located in high-profile locations – one in Auckland’s central business district and the other in the suburbs. The two locations are being sold separately by Bayleys Real Estate - with just the land and buildings on offer in both instances.

First up is a 906sq m unit titled freehold property housing the Flex Fitness gymnasium at 15/103 Symonds Street in the city, which is being marketed for sale at auction on October 23.

Bayleys Auckland sales agents Millie Liang and James Chan said the gym premises were situated immediately beside, and linking to, the Cordis Hotel – with hotel guests receiving discounted rates for utilising the gym’s facilities during their stay.

Ms Liang said the Flex Fitness tenancy perfectly suited the building’s open plan commercial floor space – with the floor plate including a reception area various zones accommodating free weights, various exercise machines, and a non-member public waiting room.

Flex Fitness is on a current lease running through until 2026 at the property, with a further five-year right of renewal generating an annual net return of $196,115 plus GST. Flex Fitness’s Auckland Central branch is one of 25 nationwide – with sister operations in Hamilton, Rotorua, Hawke’s Bay, New Plymouth, Christchurch and Queenstown

Meanwhile in the West Auckland suburb of Henderson, the second gymnasium location for sale features a 472sq m first storey premises at 192 Universal Drive – housing a branch of the Snap Fitness chain.

The property is being marketed for sale at Auction on October 23 through Bayleys Auckland. Salespeople Nicholas Ching and Jarrod Qin said the property sat within a retail hub facing onto one of West Auckland’s busiest roads.

Snap Fitness is on a current five-year lease running through until 2027 with two further six-year rights of renewal, and generating a return of $130,000 plus GST per annum. The Henderson branch of Snap Fitness is one of 54 branded gymnasium locations nationwide – offering membership access on a 24/7 basis.

In addition to the Snap Fitness tenancy, revenue at the Universal Drive property is generated from a pair of advertising billboards attached to the building. The first billboard is on lease running through to 2020 with one further three-year right of renewal generating a net annual rental of $3,000 plus GST, while the second billboard is on lease running through to 2021 generating a net annual rental of $7,200 plus GST.