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

 

Properties in Timaru’s retail hub with potential upside

Five interconnected buildings with identified add-value upside in the heart of Timaru’s main retail strip are for sale.

The buildings are arranged in a 'U-shape' configuration and flank the heritage-listed Tekapo Building on Stafford Street, Timaru’s main retail area.

The property portfolio has been placed on the market with a deadline sale date of 19th September (unless sold prior) by its Cantabrian company owners who bought the buildings 13 years ago and have been proactive in maintenance and refurbishment work since.

Mitchell Wallace and Blair Young of Bayleys Canterbury say Stafford Street is the port city’s “golden mile” and as a location, is keenly sought-after by retail and professional tenants looking for robust foot traffic, convenience and a feeling of being part of the community.

“Despite the rise of e-commerce and changing retail patterns around New Zealand and globally, provincial centres like Timaru have retained active, thriving and socially-important main shopping streets,” says Wallace.

“We can’t underestimate the role that main streets play in these smaller towns and cities and the character that is inherent in the buildings themselves is not easily-replicated in new-build shopping centres.”

Stafford Street has been at the heart of the Timaru district since the 1860s with many of its earlier timber buildings being replaced with those of local blue stone and brick after a significant fire swept through the street in 1868.

Young says the buildings in the portfolio currently for sale include some fronting Stafford Street itself, built around 1930, along with buildings to the rear built in 1985 which connect the properties and provide the third street access point onto The Terrace via plentiful roof-top parking.

“The buildings are generally in good order, with the Stafford Street buildings recently reroofed, the roof-top parking area recently resealed and all buildings strengthened to a minimum of 67 percent new build standard.

“This provides a tangible tick in the right boxes for investors seeking reinsurance and finance.”

According to data from analyst firm Infometrics, business confidence in Timaru continues to grow steadily on the back of strong employment dynamics, increased commercial visitor numbers and heightened
consumer spending.
The report showed the biggest surge in new jobs in Timaru came from manufacturing, administration and support services, transport and warehousing, the primary sector and construction.

Wallace says bricks and mortar retail is alive and well in Timaru with national and international tenants actively seeking out space along the Stafford Street retail strip.

“The properties for sale are home to Whitcoulls, Noel Leeming, BNZ and Trade Aid, with Wilson Parking managing the rooftop parking component of the offering,” he explains.

“These retail tenants are in good company as Farmers, stalwart department store Ballantynes, Rebel Sport, Glassons and Kathmandu are all close by, along with all the major trading banks.”

Collectively, the property offering returns $548,092.32 net of all outgoings per annum. Whitcoulls has six years still to run on its lease, Noel Leeming and BNZ have four years to run – after BNZ took an early three-year renewal – while Wilson Parking is on a monthly tenancy.

An additional 53.60sqm of prime Stafford Street frontage is leased to Trade Aid expiring in May 2020.

“With the exception of 363sqm occupied by BNZ on the floor above its retail storefront, the first floor of each of the buildings is vacant,” says Young.

“This includes more than 1,000sqm in the rear building which has direct roof-top parking access via a lift and stairs.

“While this space would benefit from significant refurbishment, its concrete floors and generous ceiling height would be suitable for a gym, community centre or entertainment uses, as well as more conventional office accommodation.

“Should Trade Aid not seek a new lease upon expiry, this is potentially a further opportunity to increase rental income and additionally, some restructuring of the Noel Leeming tenancy in conjunction with previous food court space could provide further upside for a forward-thinking investor.”

Timaru is the second largest city in Canterbury after Christchurch and the local council has endorsed the idea of a new steering group to develop a City Hub Strategy, recognising that proactive steps will ensure a resilient city centre in the face of changing consumer patterns and expectations around sustainability.

“This bodes well for the new owner of this opportunity-laden property portfolio as it confirms that investment and new ideas will support the ongoing vibrancy of the location,” says Wallace.

Wallace and Young believe this provincial retail portfolio will find traction with active add-value investors, syndications and family trusts and will have nationwide appeal.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:

Economy: COVID-19 Contributes To 1.6 Percent Fall In March Quarter GDP

Gross domestic product (GDP) fell 1.6 percent in the March 2020 quarter, the largest drop in 29 years, as the initial effects of COVID-19 restrictions impacted on economic activity, Stats NZ said today. This quarter’s GDP results showed a widespread drop ... More>>

ALSO:


Electricity: Transmission Pricing For A Low Carbon Future

The Electricity Authority has decided on new guidelines for transmission pricing. James Stevenson-Wallace, Chief Executive of the Electricity Authority says the new guidelines will deliver significant benefits to consumers, through lower electricity ... More>>

ALSO:

ASB: Investor Confidence Falls To Four-Year Low

As the world grapples with the fallout from the most significant pandemic the world has seen in a century, economic concerns are weighing on investors, dragging investor confidence down to a four-year low in the first quarter of the year. For the three ... More>>

ALSO:

Science Media Centre: Funding For R&D In New Zealand – Expert Reaction

Research, Science and Innovation Minister Dr Megan Woods has today announced $401.3 million funding for research and development through Budget 2020 and the COVID Response and Recovery Fund. The fund includes $150 million for an R&D loan scheme, ... More>>

ALSO:


Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:


RNZ: Fuel, Alcohol Costs To Go Up From Today

The increase today in the taxes on fuel, road user charges and alcohol is being called a tone-deaf move. More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

Potatoes New Zealand: Protecting NZ Fries As Part Of PNZ Pandemic Recovery & Transformation Plan

Potatoes New Zealand has met with Minister Faafoi this week to discuss investigating the potential importation of heavily discounted frozen potato chips into New Zealand. With MBIE’s support we are undertaking an investigation to gather evidence of the ... More>>

ALSO:


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO:


Science Media Centre: Understanding 5G Concerns – Expert Q&A


Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>

ALSO:


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>

ALSO: