Investment property sell-off continues
Investment property sell-off continues at Rotorua’s newest retail and shopping hub
The sell-off of well tenanted units within Rotorua’s newest suburban retail and commercial hub continues – with a hair and beauty salon the latest property to be placed on the market for sale.
The 4,500 square metre Redwood Centre some three kilometres east of Rotorua’s central business district opened just over a year ago – with 19 new tenancies signing up to be part of the hub. Among the nationally-branded tenants in Redwood Centre are Rabo Bank, Burger Fuel, Liquorland, Domino’s Pizza and Bin Inn.
Since then, nine buildings within the complex have been sold – in line with the developer’s business model of converting the corner location from a dated, underutilised site into a slick, fully-tenanted retail draw card straddling Rotorua’s central business district on one side, and the leisure-focused lakes district on the other.
The latest offering to come onto the market is the Copperhead Hair and Beauty Salon – a 200 square metre concrete-constructed unit with an existing tenant returning $50,000 plus GST per annum. Copperhead has just signed up for a new three-year lease on the premises, and has three further three-year rights of renewal.
The investment unit is being marketed for sale by Bayleys Rotorua through an auction taking place on April 10. Bayleys Rotorua sales person Mark Rendell said it was always the intention of Redwood’s owner/developer to ‘drip feed’ the individual units for sale onto the market over a number of years – thereby sustaining the long-term value of all premises within the retail location.
Redwood Centre has communal parking for some 205 vehicles – optimising shared usage periods throughout the day and into the evening.
“The integrity of Redwood Centre as a whole is underpinned firstly by its age – being just one year old - and secondly by the complementary nature of the occupying businesses, which brings together a non-competitive tenancy schedule,” Mr Rendell said.
“With a brand new three-year lease in place, and the potential to extend that out until 2026, the investment returns from the Copperhead premises are ideal for a passive investor looking for a low maintenance property in a vibrant retail precinct.”
A New Zealand Transport Agency high volume traffic count recorded an annual average daily traffic flow of some 34,000 vehicles past the intersection location on which the Redwood Centre sits.