An investment opportunity in Hamilton
Commercial property in Hamilton continues to attract strong investor interest, but a local real estate specialist says there simply aren’t enough properties for sale to satisfy demand.
Alan Pracy, director of Colliers International’s Hamilton office, says the local property market is underpinned by solid fundamentals.
“Hamilton benefits from a growing population, a high level of economic activity, and relatively affordable housing,” he says.
“The city is the main service centre for Waikato’s strong rural and agribusiness sector, which sustains the wider regional economy.
“It is also a key part of the ‘Golden Triangle’ — the fastest growing area in New Zealand, which includes Auckland and Tauranga.”
“It’s particularly uncommon for multiple substantial properties to come to the market at the same time — which makes the five Hamilton properties featured in the latest Colliers Portfolio a rare opportunity indeed.”
Among the listings is a 12.17ha residential development block at 208 Rotokauri Rd, Hamilton, which Pracy is marketing for sale by deadline private treaty.
“With resource consent granted for an initial stage of 170 lots, all of the hard work has already been done — just build the road and go,” says Pracy.
Two CBD properties are also listed for sale in the latest Colliers Portfolio.
Pracy and colleague Mark Brunton are marketing 94 Bryce St for sale by deadline private treaty. The 2593sq m freehold site comprises a sealed car park on an 11.5-year lease to Genesis Energy.
“This is a superb opportunity to acquire land with income in a prime CBD site,” Pracy says.
“The property is close to the Hamilton Transport Centre, Kiwi Property’s Centre Place shopping mall, and major retailers including The Warehouse and Kmart.
“With net annual rent of $178,000 and built-in annual rental growth, this is a chance for long-term investors and developers to draw on useful holding income while planning to unlock the site’s future potential.”
The second CBD property is a fully leased commercial building with multiple income streams, including a government tenant.
Colliers International Hamilton brokers David Palmer and Justin Oliver are marketing 848-850 Victoria St for sale by deadline private treaty.
On a 2573sq m freehold site across three titles, the property is a 2041sq m building with 58 car parks and dual street access. It returns $373,349 in annual rent from the car parks and four tenancies, including a long-term lease to Housing NZ.
Two listings that will appeal to smaller investors are also featured in the latest Colliers Portfolio, including a high-profile unit opposite the popular Chartwell Shopping Centre.
Oliver and Brunton are marketing Unit 15 at 9 Lynden Court, Chartwell for sale by auction.
At the front of the Chartwell Professional Suites, the 81.4sq m unit is by a bus stop and directly opposite the shopping centre.
Tenant Paterson Burn Optometrists, which has occupied the unit for the last 13 years, is signed to a new five-year lease. The lease returns $30,118 in annual rent, with programmed rental growth.
The final Colliers Portfolio listing is a purpose-built childcare centre being built in the suburb of Fitzroy.
Pracy and Oliver are marketing 239 Dixon Rd for sale off the plans.
“It is on a 15-year initial lease to a childcare operator with over 40 centres nationwide,” says Pracy. “Due for completion in 2019, it will return $260,000 plus GST in annual rent.
“With rights of renewal and builtin rental growth from CPI and market rental reviews, this is a superb opportunity to secure a long-term investment in a growth location.”
Four of the five properties are for sale by deadline private treaty closing at 4pm on Thursday, May 31, unless sold prior. The unit at 9 Lynden Court is for sale by auction at 11am on the same day.