A cinema complex in the heart of Rotorua with an established tenant on a long-term lease is available for purchase. It offers discerning buyers the opportunity to secure a desirable passive investment with high returns.
Located at 1281 Eruera Street, the 1,538sq m property sits on a 1,566sq m freehold site and is tenanted by Reading Rotorua Limited.
Reading recently began a new 10-year lease at the property that runs until 2034. There are five further rights of renewal of five years each, leading to a final expiry of 30 June 2059.
The estimated net annual rental income from the property is $353,673 plus GST and the agreement includes CPI reviews on every second anniversary of commencement, excluding lease renewal dates when a market review will take place.
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The property’s prime location offers excellent visibility and accessibility, being just a short distance from Rotorua’s CBD.
The area is well serviced by public transport and major roadways, providing convenient connectivity to other parts of the city and beyond.
Colliers Brokers Simon Clark and Mark Rendell have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 29 August, unless sold prior.
The five-cinema complex offers state-of-the-art facilities, including the latest digital projection and sound technology, stadium seating, and multiple screens.
Reading’s diverse film selections and variety of concessions attract a loyal customer base, making them a key entertainment destination in the community.
Clark, Managing Director of Colliers Tauranga, says this is a premium investment opportunity that is underpinned by a global tenant.
“Reading is known for delivering a world-class movie-going experience for customers. With a presence in countries like the United States, Australia, and New Zealand, they operate eight locations throughout New Zealand and nearly 30 in Australia,” Clark says.
“Reading Cinemas is actively involved in local events and hosts special screenings, enhancing Rotorua’s cultural scene. Their strong presence in the entertainment industry provides financial stability and consistent revenue generation, making them the type of tenant that investors seek.”
Following the challenges posed by the Covid-19 pandemic, tourism is continuing to rebound in Rotorua with the city known for its geothermal activity and rich M?ori culture that attracts strong numbers of domestic and international guests.
According to data from Infometrics, tourism accounted for $260.4 million of GDP for the Rotorua District in 2023, representing 13.4 per cent annual growth.
Last year, the city was named by Forbes as one of the 50 hottest tourism destinations in the world, underscoring its reputation as a must-see location.
Rendell, Commercial and Industrial Sales Broker at Colliers Rotorua, says the strategic position of the property means it offers easy-to-access car parking for customers to enjoy the experience of going to the movies.
“Nearby amenities within walking distance include various retail outlets, cafes, restaurants, a mall, and essential services, making it a highly desirable location for businesses and visitors alike,” Rendell says.
“The property’s proximity to popular tourist attractions such as the Government Gardens and Lake Rotorua further enhances its appeal, ensuring a steady flow of both local and international visitors.
“This is a high-quality purchasing opportunity and we encourage all interested parties to make contact with us immediately.”
- Supplied by Colliers
