Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Retail block set to gain in value from proximity to hotel

Retail property block set to gain in value from proximity to hotel development location

A block of retail properties containing two ethnic eateries – both set to benefit from the development of a new accommodation hotel immediately across the road – has been placed on the market for sale.

The three site block in the centre of Havelock North in Hawke’s Bay contains Chinese and Indian restaurants, as well as a gift and stationery shop. It will be immediately across the road frrom the new $20 million five-star boutique hotel and retail complex consented for the town centre.

The new 57-room Havelock North hotel and conference facility will replace what was the Happy Tav’ pub. The location’s development – albeit some 24 months away – has been welcomed by the likes of the Havelock North Business Association and Hawke's Bay Tourism.

Both business bodies forecast the hotel will bring in more corporate and leisure travelers to the area - both sectors which are predicted to generate a positive local-spend impact on town centre businesses.

The Havelock Road retail block facing the hotel development land and containing the Curry India and Happy Dragon eateries, along with the Gifts Galore shop, is being marketed for sale by Bayleys Havelock North through an auction process taking place on April 11.

Salesperson Daniel Moffitt said the land and buildings up for auction sat on 470 square metres zoned 8C under the Hastings District Plan. The site has more than 18 metres of frontage onto Havelock Road.

“Land and buildings in the Havelock North CBD rarely comes onto the market – which is why the Happy Tav’ location over the road was snapped up quite some years ago by developers who could see the long-term potential for the town as a tourist destination,” Mr Moffitt said.

“The intervening years have seen the planning approvals process move through its required chain, with the next step being the partnership of a hotel operator, and ultimately the building’s construction.

“With much of the town owned by Hawke’s Bay entities, many of whom know each other through both their commercial real estate and social networks, any time land and building come up for sale it’s the veritable ‘talk of the town’. As such, many of the retail outlets that do come up for sale, change hands quietly off-market.

“For example, since the middle of last year, all six commercial and industrial properties sold in Havelock North have been through sales with no open marketing.

“However, by taking this block to an open sale process, it ensures a wide buyer audience,” he added.

Happy Dragon restaurant has a current lease running through to 2016 with a final potential lease expiry of 2026. Gifts Galore has a current lease running through to 2015 with a final potential lease expiry of 2024. Curry India has a current lease running expiring this month but with a final potential lease expiry of 2018. Combined, the three tenancies generate a net rental of $95,000 per annum.

Mr Moffitt said that while the new hotel would have in-house food and beverage operations, it was well known that house guests – particularly those staying multiple nights – often chose to spend one occasion dining in-house, and the second or third occasion at nearby local establishments.

“All business travelers know how tedious and in fact lonely it can be, either ordering in food to their room, or sitting alone in a hotel restaurant. So they seek the atmosphere of nearby eating and drinking venues – where there is the chance to meet and mingle with ‘locals’,” Mr Moffitt said.

“By their very nature – Curry India and Happy Dragon will be right on the doorstep of the new hotel to pick up on that guest traffic. And with a range of Hawke’s Bay-orientated paraphernalia, the Gifts Galore shop is well positioned to attract guests seeking to purchase presents to take home.

“The pending increase in foot traffic and consequently turnover will give an underlying confidence to the operators of these three retail premises, which in turn underpins their long-term investment value.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news