The land and building housing a landmark bank branch in the heart of Rotorua’s city centre have been placed on the market for sale.
The two-storey freehold property on a prominent corner site at 1251 Fenton Street is occupied by anchor tenant ANZ bank, plus a bicycle retailer and a local accountancy business – generating total net annual rental income of $253,932 plus GST.
ANZ - which has occupied the site for 30 years - leases 1,080 square metres of high-profile ground-floor space, paying total annual rent of $204,234 plus GST per annum. Its current three-year lease runs to 2022, and has four further three-year rights of renewal. The lease terms include annual two-percent fixed rental increases.
Electric bike retailer Mohawk Adventures Limited leases 143 square metres of ground-floor space, generating rental income of $19,000 plus GST per annum. Its existing lease runs through to 2023 and has three further four-year rights of renewal.
A further 277 square metres of first-floor office space is occupied by local accountancy firm Avid Business Agency Limited, which recently signed an eight-year lease with two further three-year rights of renewal.
The property at 1251 Fenton Street is now being marketed for sale jointly by Bayleys Rotorua and Bayleys Tauranga. Salespeople Mark Slade, Mark Walton and Brei Gudsell said the property comprised a two-storey building with a floor area of approximately 1,499 square metres on 1,589 square metres of freehold land. The site is supported by 11 off-street car parks across the three tenancies.
Slade said the distinctive building was constructed in the late 1980s on a high-profile site with dual street frontages at the intersection of Hinemoa Street and Fenton Street - the main thoroughfare of Rotorua’s central business district.
“Anchor tenant ANZ, New Zealand’s largest bank, occupies the ground-floor corner with eight car parks. The electric bike retail outlet occupies a smaller ground-floor space with frontage to Fenton Street, with one dedicated car park,” Slade said.
“A separate first-floor office area, with access via Fenton Street, is occupied by local accountants Avid Business Agency. This tenancy comes with a further two car parks.”
The building had been seismically strengthened to an Initial Evaluation Procedure rating of 75 percent of new building standard, and is zoned City Centre 1 under Rotorua Lakes Council’s district plan.
Walton said this zoning allowed for activities that drove the district’s central commercial hub with an eclectic mix of retail shops, entertainment venues, restaurants, accommodation and commercial offices.
“The zoning aims to support buildings which are designed to enhance the pedestrian experience in the central city. This has resulted in a lively area which is characterised with closely-spaced shop frontages, vibrant lighting and signage, and high foot traffic,” he said.
Walton said local property fundamentals were underpinned by Rotorua’s status as one of the most diverse local economies in the country – sustained by industries including agribusiness, forestry and wood processing, geothermal power generation, tourism, manufacturing, education and health.
“In comparison to other parts of New Zealand, however, property in Rotorua is still affordable and commercial and industrial rates are lower than in the more populated centres,” Walton said.
Gudsell said the local market was also supported by Rotorua’s central location within the North Island – an hour’s drive from Tauranga and Hamilton and two-and-a-half hours from Auckland.
“Rotorua has ready access to nearly half of New Zealand’s population within a three-hour drive and is less than one hour from the country’s busiest port at Tauranga,” she said.
“All of these factors are leading many businesses to recognise that there are compelling competitive advantages to locating within the city.
“With its strategic and highly-visible corner location in the heart of Rotorua, and an outstanding tenant covenant with secure rentals on three to eight-year terms, the property at 1251 Fenton Street will be of interest to investors seeking a passive investment with a national anchor tenant.”