Fishing town’s retail block set to lure investors

One of the biggest modern retail blocks in a fast-growing big game fishing town has been placed on the market.

The substantial rectangular-shaped block runs off the middle of Whitianga’s central business district linking down to the Whitianga Marina, and contains stores ranging from restaurants, bars, and farm irrigation supply outlets, through to a dental studio, a carpet retailer, a bakery, and a cancer support charity store.

Built in the mid-2000s and containing 15 different tenancies trading in a wide range of business sectors, the block benefits from a high-profile corner location.

The single-storey property comprises some 2,564-square metres of terraced retail units sitting on approximately 3,949-square metres of flat land. Individual floor spaces within the 15 different tenancies range in size from 100-square metres up to 300-square metres.

Over the past decade, the Coromandel town has grown to become New Zealand’s foremost big game fishing destination – with bountiful billfish found off its shores, and anglers coming from within the country and abroad to partake in the recreational activity.

Whitianga now annually hosts one of the most lucrative big game fishing events in the Southern Hemisphere, the Kubota Billfish Classic – with a potential prize pool of up to $875,000. Major prizes include $200,000 for the heaviest billfish.

Benefitting from a location opposite Whitianga Marina, the freehold land and buildings at 1-29 Blacksmiths Lane in Whitianga are now being marketed for sale by tender through Bayleys Hamilton, with the tender closing on November 3.

Salesperson Josh Smith said the block’s tenancies had a weighted average lease term of four years and encompassed a broad and diverse tenancy mix across the retail sector.

“Combined, the block generates approximately $430,000 plus GST and operating expenses per annum. The 15 tenancies are structured to come up for renewals on a rolling basis at different times – delivering a relatively consistent rent roll,” said Smith.

“The units have been consistently in demand throughout the life of the block – thanks to its prime location.

“The property offers a multitude of ownership permutations – from a pure ‘as-is’ investment founded on a split-risk tenancy profile with the potential for subdividing some of the bigger tenancies, through to creating a mixed-used premises sustaining construction of apartments on upper levels, subject of course to council consents.”

Retailers within the block benefit from extensive public parking spaces on Blacksmiths Lane running along the length of the shops. Additionally, there is substantial sealed staff parking for more than 30 vehicles running around the rear of the block – with two entry/exit points off Blacksmiths Lane. The individual units within the block have rear door access to the service lane, many with roller doors.

“The property’s structural configuration and design delivers considerable flexibility for tenancy options - with services in place to split the larger tenancies if required,” Smith said.

“The building also has the ability to be built upon - with approximately 600-square metres suitable for sustaining residential apartments. Any apartments could have fabulous marina and harbour sea views, while also being in the centre of town for access to retail and social amenities.

“The rear aspect of the block faces out onto a council-run park and landscaped recreational amenities, while the front portion of the block looks over Soldiers Memorial Park.

“The precedent for any such residential development already exists within Central Whitianga - with Blacksmiths Lane sitting immediately adjacent to land designated with a pedestrian core zoning overlay which permits the construction of apartments in conjunction with maintaining retail premises at street level.”

The Blacksmiths Lane address is zoned commercial 8B under the Thames Coromandel District Council plan. It is the first time the retail block – well known in Whitianga for its wave-like shopfront awnings over the pavement - has been offered for sale since its inception.

Thames Coromandel District Council’s 2018-2028 Long Term Plan demographic trends report identifies Whitianga and Tairua as the two towns in the province forecast to experience the biggest growth in the number of holiday and full-time occupied homes being built.

“The projected dwelling and rating unit growth rate (for Whitianga) is higher than population projections due to the ongoing growth in holiday homes. Mercury Bay (which includes Whitianga) is projected to experience the greatest growth in population,” the statistics-based council report noted.

“The number of houses is projected to increase across all parts of the district over the next 30 years - with an increase of around 3,580 new houses between 2018 and 2048. Much of the projected growth in the number of houses is expected to occur in the Peninsula’s popular holiday settlements - Tairua and Whitianga.”

Smith said that with Whitianga’s population continuing to grow, demand for retail and hospitality services in the town would consequently grow in parallel.

- Article supplied by Bayleys