The central city land and building housing a leading provincial bus company’s bus terminal and offices have been placed on the market for sale.
The property at Bridge Street in Central Nelson is occupied by the Tasman region’s biggest privately-owned bus company which has been operating in the city for more than 90 years.
With a modern fleet of buses and coaches ranging from 13 to 53-seater vehicles, the family-owned passenger transport business operates the local NBus services for the Council, customised tours and charters, school and sports team transport, and conference and event passenger services.
The conveniently-located Central Nelson depot straddles Bridge Street and Wakatu Lane – allowing easy and efficient entry and exit access and is zoned Inner-City Centre under the Nelson City Council plan. The property is situated between two public car parks.
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The rectangular-shaped address features 1,526-square metres of land – is currently used as a bus terminus and vehicle parking.
On the site are two separate buildings that were built at different times. The original 165-square metre building is situated on the Bridge Street frontage, and comprises a single level building constructed in the early 1990s and consisting of the depot, waiting room, plus offices and toilets.
In the early 2000s, a two-level office block of approximately 290-square metres was built to the rear of the original depot fronting onto Wakatu Lane - comprising of offices, amenities, and a retail space on the ground floor.
The freehold property at 25-27 Bridge Street is now being marketed for sale by tender through Bayleys Nelson, with the tender closing on April 26 (unless sold prior).
Salesperson Paul Vining said the property comprised three titles – with minimal buildings on two of the titles, and the main office and retail premises situated on the third portion of land.
Vining said that long-term, the bus company would be relocating its bus terminal operations to new premises in the region.
“Nelson SBL Holdings Ltd currently owns the property which is leased to an associated company SBL Group which operates various passenger transport brands, and is looking for a sale-and-leaseback arrangement with any new owner.
"A three-year lease through to the middle of 2025 with a negotiable final expiry date will be for a set rental of $146,300 per annum plus GST, while other lease terms and details can be finalised in advance of any purchase agreement so that an investor has the surety of knowing exactly what they are buying in to,” Vining said.
Vining said the three-year lease on the property would deliver substantial holding income while allowing any prospective new owner to have redevelopment plans drawn up for the site and submitted to Nelson City Council for consenting approval.
“The property benefits from 30-metre-wide street frontages onto both Bridge Street and Wakatu Lane. There is the potential to reconfigure the existing building into refurbished retail or commercial office space, while simultaneously building new premises on the substantial portion of the site currently a flat yard and vehicle parking space.
“Alternatively, the existing building could be demolished to make way for an impressive new structure occupying the entirety of the site, subject of course to council approval.”
Nelson council’s Inner-City zoning allows for retailing operations, offices, or food and beverage businesses – with the potential for residential apartments permitted on the upper levels.
The council’s Long-Term Plan 2021-31 acknowledges that a review is currently being undertaken for “enabling greater utilisation of space above ground floor for residential activities in the city centre.”
The council has also set aside $15.3 million for developing Nelson’s central business district into what it is calling a more “people focussed” destination – including establishing inner-city parks and play spaces. The local body is forecasting Nelson's population to increase by approximately 2,500 new residents between 2021 and 2031, to a total population of 57,180 people.
“The strategic location of the premises sits right within this zone – allowing any future development plans for the site to dovetail behind the council’s intentions, and thereby maximise future returns from any configuration of tenancies or property usage,” said Vining.”
- Article supplied by Bayleys
