The land and buildings housing a pub and neighbouring off-license operation have been placed on the market for sale.
The Turf Hotel and Turf Liquorland businesses in the Nelson suburb of Stoke operate from a 3,512sqm corner site at the intersection of Songer Street and Main Road Stoke. In addition to the two freestanding stand-alone business on the property, there is also a four-bedroom residential dwelling above the liquor store.
The two Turf hospitality and beverage-sales businesses are run by two different but associated corporate entities, with the residential flat is leased out separately. Combined, the three individual leases generate a total rental income pool of $326,400.
The hotel portion of the property, including car parking for 36 vehicles, is on a lease running through to 2028 with two further 10-year rights of renewal – generating annual net rental of $225,000 plus GST. Two-yearly rental reviews are written into the lease.
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The Turf Hotel has been serving pints from its high-profile location for since the 1960s – and now derives income from the full gamut of hospitality services, including:
• A traditional Kiwis sports bar whose walls are adorned by an array of sporting images and memorabilia, surrounded by a multitude of big-screen TVs and pool tables, and serviced by TAB betting systems
• A segregated gaming room sustaining 18 machines
• A modern open plan short-order style restaurant rebuilt in 2016 and serving gastro pub fare from a commercial-grade kitchen with cooking equipment such as a gas hob and oven, deep fryers, a stainless-steel extraction range, walk-in refrigeration unit, and multiple stand-alone ‘fridge and freezer units
• A grassed lawn and al-fresco deck dining and drinking area popular with families comprising young children; and
• Modern three-and-a-half star accommodation consisting of six guest bedrooms which had been completely renovated and refurbished in 2016.
Meanwhile, the liquor retailing portion of the property, including exclusive car parking for 6 vehicles, is on a lease running through to 2032 with a further 10-year rights of renewal – generating annual net rental of $78,000 plus GST. Two-yearly rental reviews are written into the lease. The outlet is part of the nationwide Liquorland franchise network of stores.
And rounding out the trio of revenue streams, the four-bedroom residential component of the property comes with two car parks, and is on a year-to-year lease generating a gross rental of $23,400.
The building housing the liquor outlet and home was structurally ungraded in 2014 to achieve a new building standards rating of 67 percent.
Now the Turf Hotel, Turf Liquorland, and residential apartment land and buildings at 218–228 Songer Street are being marketed for sale by tender through Bayleys Nelson, with tenders closing on March 4.
Bayleys Nelson salesperson Paul Vining said the property was zoned suburban commercial under the Nelson City Council plan. Only the real estate assets, and not the businesses, are being offered for sale.
“’Turf corner’ is located on the main arterial route linking Nelson with the southern suburbs of Stoke and Richmond – sitting in an unpretentious neighbourhood urban area where patrons drop in for a beer or two on the way home from work, where sports-lovers can head along to watch their favourite sports, or where commuters and locals pick up their beverage in an easy drive-through style retail environment,” Mr Vining said.
“With three separate revenue streams from different economic sectors, the property delivers a split-risk investment opportunity. This aspect is underpinned with rent reviews enacted every two years for the commercial premises, and on a yearly basis for the residential tenancy – enabling the property owner to potentially keep ahead of inflation.”
