A ‘flippin good’ leisure investment
The land and buildings housing “Flipout”, one of Hawke’s Bay’s most popular leisure service operators is for sale. The property, at 403 St Aubyn St East, Hastings, is being marketed through Bayleys Hawke’s Bay, with tenders closing on March 9.
Salesperson Paul Garland says the 3049sq m of land plus 1640sq m building are zoned industrial, having a combined rateable value of $1.4m.
Flipout features about 30 trampolines and caters to a variety of abilities and ages, says Garland.
It primarily markets towards children and parents, hosting events such as birthdays and holiday activities.
Garland says 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 sites in Christchurch East, Tauranga, Rotorua, and Timaru. New venues are to open in Nelson and Christchurch West, says Garland.
“It has a current five-year-lease on the majority of the St Aubyn St East premises — returning annual rental of $140,000 per annum.
“A lease signed late last year runs through to 2021, with five further fiveyear rights of renewal and Flipout paying all operational expenditure. The lease includes 42 car parks.”
Garland says the building is also occupied by vehicle rental firm Metro Rentals, established in Hawke’s Bay 20 years ago, which offers a variety of vehicles in its fleet — 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 five-year-lease on its 9sq m of office space within the building, returning annual rental of $6000 per annum.
The lease runs to 2021, with five further five-year rights of renewal, and Metro Rentals is paying outgoings such as council rates, insurance and water charges. The lease includes four car parks.
Garland says the two-storey warehouse-style property was built in the mid-1970s, with additional floor space added in 1987.
An independent engineer’s report says the premises is built 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 is timber trussed, supported by steel beams and columns.
The Flipout and Metro Rentals portions of the building have individual bathroom facilities, administrative offices and staff room amenities. Flipout also has a public cafe area.
Garland says the industrial neighbourhood compliments the leisure business’s core tenancy; it is on the city’s main arterial route, carrying 16,000 vehicles a day.
“Flipout’s busiest periods are the weekends and school holidays when children need time-consuming activi- ties 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 St East,” says Garland.
“A regular maintenance schedule of the building keeps the general condition of the complex 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 a substantially different offering to what it would have been in its previous guise a year ago and appeals as an investment opportunity.”