NZ Post building offers leeway on zoning
The iconic building that is home to New Zealand Post in Thames’ main centre is up for sale.
The two-level building has 1078 square metres of space.
Located on Pollen St, the property is being marketed by JLL agent Jason Armstrong through an expression of interest campaign closing on April 12.
The ground floor is leased to NZ Post through to 2028 and the first floor accommodates five tenants.
At the rear of the site is a carport that forms part of the NZ Post tenancy. There are also two older masonry buildings that are vacant.
Surrounding development includes a mix of low-rise retail properties.
‘‘The property is in a prime location and the tenancy with NZ Post accounts for around 75 per cent of the overall income,’’ Armstrong said.
‘‘The property is currently returning $119,511, part gross, but there is potential to add value by increasing the rental income or by converting the existing space.’’
There was also scope for redevelopment under current zoning rules, he said.
‘‘Zoning rules for Thames’ town centre under the district plan are activity based rather than zone based. This means there is greater flexibility in how the site could be used by investors.’’
JLL national research manager Tom Barclay said the demand for commercial and industrial property in provincial towns has risen over the past two to three years.
‘‘As returns have been squeezed lower in the main centres, investors have looked to the regions for higher yielding property,’’ he said.
‘‘Investment sales yielding below 6 per cent are now commonplace in Auckland, and with a tight supply of property to the market, competition for assets is tight.
‘‘Investors are increasingly looking to the Hamilton, Tauranga and Taupo markets.’’ –Fairfax NZ