Hamilton victim of own success as central mojo returns

Central Hamilton is becoming a victim of its own resurgence with fewer smaller properties available to renovate, according to Hatwell Properties owner Mark Hatwell.

The company has been busy rebuilding and extending the former Liquor King building at 164 London St into three tenancies.

The 2300 square metre property is undergoing a $1 million refit.

Harcourts is seeking tenants for the revamped property.

‘‘We’re building on spec. There is a demand for A-grade office space. However, the central city is short of sellers of sites,’’ Hatwell said. ‘‘People want top dollar even for empty buildings. Buyers wouldn’t be able to get the investment back in rent so people are just holding on to property and hoping.’’

Harcourts managing director for commercial sales and leasing, Mike Neale, said the shortage of smaller buildings and sites came down to a ‘‘staggering’’ amount of redevelopment in recent years.

‘‘Vacancy rates have fallen, and with the low interest rates, longterm owners are either holding with existing tenants or prepared to wait through a period of some vacancy to get a significantly better return than the 3 per cent they would be getting in the bank.

‘‘Sometimes a seismic strengthening issue often causes more elderly owners to consider selling.’’

Meanwhile, Hatwell is waiting for a final decision from Hamilton City Council over the proposed Millennium Esplanade project before developing a 600sqm riverside block he owns.

The project is a pedestrian bridge linking Memorial Park and the central city first mooted nearly 20 years ago.

Hatwell said the property could make an ideal spot for a cafe or restaurant near the footpath that would connect the river from the museum to the planned theatre on the Hamilton Hotel site.

This would require a ramp, rather than the 100-odd steps in the existing footpath.