Trampoline business site offers flippin’ interesting opportunity
Trampoline business site offers flippin’ interesting investment opportunity
The land and buildings housing one of Hawke’s Bay’s most popular leisure service operators have been placed on the market for sale.
The freehold land and buildings at 403 St Aubyn Street East in Hastings house indoor trampoline park operator Flipout – which features some 30 trampolines catering to a variety of abilities and ages. Flipout primarily targets its marketing towards children and their parents for hosting events such as birthdays and holiday activities.
Flipout is an internationally-franchised company with 60 trampoline parks spread throughout Australia, Dubai, Malaysia, Mexico, Namibia, Scandanavia, Spain, Taiwan and the UK. The Hastings business is part of a New Zealand-wide network with sister sites in Christchurch East, Tauranga, Rotorua, and Timaru. New venues are soon to be opening in Nelson and Christchurch West.
Flipout has a current five year lease on the majority of the St Aubyn Street Eastpremises – returning annual rental of $140,000 per annum. The existing lease signed at the end of last year runs through to 2021, with five further five-year rights of renewal and Flipout paying all operational expenditure. The lease also includes 42 car parks.
The building is also occupied by vehicle rental firm Metro Rentals which was established in Hawke’s Bay 20 years ago, and offers a wide variety of vehicles in its fleet – ranging from family sedans through to minibuses and furniture removal trucks. The St Aubyn Street East site is the pick-up and drop-off delivery point for the company’s rental operations.
Metro Rentals has a current five year lease on its nine square metres of office space within the building, returning annual rental of $6,000 per annum. The lease runs through to 2021, with five further five-year rights of renewal and Metro Rentals paying outgoings such as council rates, insurance and water charges. The lease includes four car parks.
The 403 St Aubyn Street East land and building are being marketed for sale by tender through Bayleys Hawke’s Bay, with tenders closing on March 9. Bayleys Hawke’s Bay salesperson Paul Garland said the 3,049 square metres of land and 1,640 square metre building were zoned industrial and had a combined ratable value of $1.4 million.
Mr Garland said the two-storey warehouse-style property was built in the mid-1970s, with additional floor space added in 1987. An independent engineer’s report noted the premises was constructed of block walls and concrete flooring on the ground level, with timber framed walls with light steel cladding on the upper storey. Flooring on the first level was timber trussed, supported by steel beams and columns.
Both the Flipout and Metro Rentals portions of the building have their own individual bathroom facilities, administrative offices, and staff room amenities. The Flipout operation also includes a public café area.
Mr Garland said the industrial neighbourhood of the St Aubyn Street East leisure centre complimented the business’s core tenancy – located on the city’s main arterial route with some 16,000 vehicles per day passing the property.
“Flipout’s busiest periods are the weekends and school holidays when children need time-consuming activities to entertain them. Both these periods are simultaneously the quietest trading periods for many of the adjoining industrial businesses. This works perfectly for overflow parking utilising the meter-free spaces on St Aubyn Street East,” he said.
“A regular maintenance schedule of the building has ensured the general condition of the complex has been kept to a high standard. The relatively straightforward conversion of what was once an industrial plant and warehousing facility into a large indoor recreational tenancy has successfully transformed this building’s use.
“As such, and with a long lease in place, the property is now a substantially different offering to what it would have been in its previous guise a year ago. It was a visionary piece of property management, which has underpinned the building’s appeal as an investment opportunity.
“The high stud ceilings and open plan floor space ensure that the energy and body heat created by Flipout’s highly active clientele are easily absorbed into the environment through the use of simple window ventilation.”