The Hastings CBD land and buildings occupied by the popular CityFitness gym are on the market with Bayleys, and agents say investment by both public and private entities in the wider area gives additional confidence to the investor market that is homing in on Hawke’s Bay.
Hastings District Council has invested $40 million into its flagship Toitoi-Hawke’s Bay Arts and Events Centre which further underpins the compelling credentials of the fully-leased large-format retail offering at 340 Heretaunga Street East, a strategic corner site in the CBD.
The highly-anticipated reopening of the city's historic Municipal Building and Opera House as the Arts and Events Centre has firmly put the spotlight on the eastern quadrant of the city’s CBD, with revitalised business offerings and a proactive strategy set to drive activity in the area.
Retailers and business operators in the vicinity will leverage off the upgraded precinct and its range of amenities.
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The well-presented A-grade modern building occupied by CityFitness has a seismic rating assessed at 95 percent new building standard, and has a 2,675sqm building footprint including verandas and canopies.
The property also includes 28 dedicated car parks plus additional parking, and occupies a freehold 3,643sqm site with dual street frontage giving it extensive visibility and profile.
The property lies at the gateway to Hastings CBD from Havelock North and is directly opposite New World Hastings.
CityFitness has a long-term lease with 12 years left to run, rights of renewal through until 2046, and rent reviews every two years to a combination of market and CPI benchmarks.
The property returns an annual income of $485,384 plus GST.
The building has minimal fit-out and is internally partitioned to provide a large central open plan area, two partitioned offices, rubbish store, amenities and two open-plan rooms at the rear utilised as a ride studio and exercise area.
Site development comprises 28 asphalt sealed car parks and a sealed concrete yard located at the Hastings Street North frontage.
The property also has parking rights to 38 asphalt sealed car parks over the central car park, which are shared with the adjoining property.
Sunil Bhana of Bayleys South Auckland is marketing the property with Mike Houlker, Bayleys Auckland Central and Michael Su, Bayleys Napier, with tenders closing Thursday 16th June, unless sold prior.
Bhana says investment opportunities of this calibre seldom come to the market in Hastings and interest is strong.
“This property has all the hallmarks of a quintessential bottom drawer investment, with the long-term lease being a real drawcard.”
“CityFitness has 43 gyms nationwide and is a proven and well-entrenched national tenant on this site, having literally cornered the personal fitness market at this end of town.”
“The long-term lease credentials, pivotal location, quality building that underwent substantial refurbishment in 2017, and the growth dynamics being seen in Hastings city, all underscore the value proposition for an investor looking for a healthy return on capital and passive ownership.”
Su says there’s been a raft of new investment in Hastings that will give assurance to both local and out-of-town buyers.
“Property investment company PMG recently purchased the high-profile Farmers building in the Hastings CBD to add to its commercial portfolio fund, and there’s been significant private investment made in pockets of the CBD close to the CityFitness offering, like on the former Herald Tribune site.”
“Looking at Hawke’s Bay in a wider context, there are new initiatives underway at the Port, Meridian is building a $395 million wind farm north of Napier, and horticultural heavyweight T&G Global is investing $100 million into a new automated packhouse in Whakatu.”
“This proactive spending, along with a heated residential market, reinforces the region’s growth trajectory and we’re seeing Hasting city emerging as a hot spot of activity on the back of Council’s new Toitoi precinct which will have event/theatre space, an art gallery, boutique bars and eateries and a Quest Apartment Hotel.”
Actual population growth in Hawke’s Bay has exceeded all recent forecasts, with the region having a population of more than 160,000 people.
Council’s population modelling indicates that residential population in the region could hit 200,000 by around 2030.
- Article supplied by Bayleys
