A multi-tenanted Rotorua city centre property anchored by the TAB is set to get investors racing when it goes under the hammer this month.
The prominent corner site enjoys main street profile on Rotorua’s Tutanekai Street. Its approximately 556-square-metre net lettable area is fully leased to five diverse retail and service tenants.
Alongside the TAB, the complex is home to a barber, nail salon, manufacturing jeweller and boutique shoe, clothing and accessories store. It generates a total net rental return, after ground rent on the leasehold title is paid, of some $97,892 plus outgoings and GST per annum.
Anchor tenant, the TAB, occupies over a quarter of the property. It pays an annual net rent of $65,000 plus outgoings and GST on a current lease that runs through to 2028, with a further five-year right of renewal.
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Formerly the New Zealand Racing Board, TAB NZ is the country’s sole national betting agency. From its original roots in racing, it now offers a wide variety of sports betting options via an extensive network of outlets throughout New Zealand.
The property at 1284-1290 Tutanekai Street, Rotorua, is being offered for sale through Brei King, Mark Slade and Damien Keenan of Bayleys Rotorua.
The site will go under the hammer at an auction on Tuesday 29 October, unless it is sold prior.
King said the single-storey corner retail complex enjoyed standout city-centre profile supported by over 50 metres of frontage to Tutanekai and Eruera streets.
“Business occupiers here enjoy the visibility and exposure to heavy foot traffic that comes with being positioned right in the heart of Rotorua’s lively retail district.
“Each tenancy enjoys street-level window exposure and has a wheelchair accessible entrance. The complex offers shared bathroom amenities for all five tenancies, kitchen facilities, and a rear loading lane.
“Citywide accessibility is supported by numerous local bus services and extensive on-street parking in the area,” said King.
The building sits on some 692 square metres of leasehold land on a perpetual lease.
Slade said the property sat in the heart of City Centre Zone 1 under Rotorua’s district plan.
“Centred around Tutanekai Street, the zone recognises and supports this area as the commercial heart of Rotorua. The concentration of shops, restaurants, bars, hotels, and offices make this a lively place with plenty of activity and foot traffic.
“With its eclectic small shop frontages, and abundant lighting and signage, the built environment in this zone is designed to promote an enjoyable and vibrant environment for pedestrians,” said Slade.
Keenan said the investment credentials of the site for sale were underpinned by its high-profile main street presence and diversified income streams from established tenants.
“The leases provide solid security with terms extending up to five years, and a history of tenancy renewal ensures consistent rental income. The presence of a national anchor tenant of the calibre of the TAB demonstrates the high desirability of this city centre location,” Keenan said.
- Supplied by Bayleys
