A diversely tenanted corner-site block sustaining six separate tenancies in the middle of a busy Central North Island town known for its farming and forestry activities has been placed on the market for sale.
The prominent premises in the heart of Te Kuiti on the border of the Waikato and King Country districts, features a two-storey 838-square metre retail and commercial block sitting on some 711-square metres of land.
The high profile commercial and retail premises within the block overlook a wide pavement around their frontages, with ample street parking immediately outside for customer parking on both King Street East and Taupiri Street, while the rear of the block is accessed by delivery vehicles via a private service lane.
The modern and well-maintained property is situated beside one of Te Kuiti’s busiest roundabout intersections – delivering high foot and vehicle traffic flows for all tenants.
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The King Street East address is zoned for commercial use under the Waitomo District Council plan.
The prominent tenanted freehold corner site land and building at 14 King Street in Te Kuti are now being marketed for sale at auction on August 20 through Bayleys Waikato.
Salesperson Josh Smith said the multi-tenanted premises comprised an incredibly diverse tenancy mix – ranging from a pair of community services organisations, through to a preloved clothing store, and a well patronised hospitality outlet.
Combined, the tenancies within the block generate annual income of $48,937 plus GST and operating expenses, and comprise:
-Popular licensed bar, eatery, and gaming room operator The Muster Lounge on a current lease running through to 2037, with three further three-year rights of renewal included
-The Waitomo Christian Fellowship Trust Board on a current lease running through to 2025 with a further one-year right of renewal, returning $9,000 plus GST and operational expenses per annum
-Pre-loved clothing outlet The Velvet Couch on a current lease through to 2026 with two further two-year rights of renewal, returning $6,500 plus GST and operational expenses per annum
-Daytime café and lunch bar King Street Kitchen on a current lease running through to 2028 with four further four-year rights of renewal, returning $6,500 plus GST and operational expenses per annum
-A long-standing continuous token lease to the Waitomo Electric Power Board for an electricity sub-station discretely positioned on corner of the site, returning $2 per annum.
Smith said there was the potential for any new owner of the block to increase rental revenues from the tenancies when their leases came up for review – piggybacking off being one of the best retail and commercial locations in Te Kuiti.
He said the split-risk model within 14 King Street East delivered stability and resilience across the multiple tenancies - ensuring there was no reliance on any one sector of the wider economy.
“All tenants within the property take full advantage of the signage advertising and expansive branding opportunities available both at street level, and, for the tenants on the first floor, on the eaves hanging above the pavement looking out onto the car park to promote their brands. The public is left in no doubt as to who the tenants are,” he said.
“There is plenty of public parking for vehicles immediately outside the shops and offices both along King Street East and Taupiri Street.”
Like many small regional New Zealand rural townships, central Te Kuiti businesses are facing the challenge of how to stay relevant to changing social habits and consumers’ economic behaviour.
In response, pro-business Waitomo District Council is pushing plans to support the long-term viability of Te Kuiti’s town centre – labelling Te Kūiti central business district commercial zone as the ‘Te Kūiti CBD precinct’ based around a heritage architecture core hosting the likes of food and beverage outlets, health and beauty services such as hair salons, along with stand-alone owner/operated boutiques, and localised shops.
Waitomo District Council’s business plan for townships within its administrative jurisdiction outlines: “The main goal for central business areas (including Te Kūiti) is to have ‘vibrant town centres’.”
“The purpose of this CBD precinct is to create a consolidated, vibrant area where retail activities and commercial services are encouraged to locate. This will help to increase commercial and pedestrian amenity values and provide a destination for shoppers,” says the council’s planning paper.
“This plan supports this outcome by providing for a range of retail and commercial services within the precinct and restricting retailing outside of the pedestrian frontage area to retail activities that are more than 300 square metres in area.“
Te Kuiti has an estimated population of 4,670 people living within its urban boundary of approximately 8.41-square kilometres. Its population has been growing in size slowly but steadily since 2013. Running parallel to State Highway 3, Taupiri Street is one of Te Kuiti’s two main retail destinations.
- Supplied by Bayleys
