Orewa bank site — just beachy
Having been leased to National/ANZ Bank and NZ Post/Kiwibank for 23 years, a superbly-sited Orewa corner property is now for sale.
The 648 sq m building was purpose-built by NZ Post in the mid1990s; half being leased to the then National Bank — now part of ANZ.
Set a 586sq m site at, 2 Hillary Square, it fronts on to Hibiscus Coast Highway and Florence Ave, a threeminute-walk from Orewa Beach.
But now the private investor who owns the prime site has directed Mustan Bagasra, Bayleys Orewa, and Nicolas Ching and James Chan, Bayleys International, to sell it.
No 2 Hillary Square tops a long list of commercial properties destined to go under the hammer on December 5 (unless sold prior) in Bayleys’ final Total Property portfolio auction for the year.
“It comprises a high-stud, single level building, plus a mezzanine area within the ANZ Bank premises,” says Ching. “It has been constructed to a high standard, with precast concrete tilt slab walls, which is reflected in its A+ seismic assessment of over 100 per cent of New Building Standard.
“It is also extremely well presented with both tenants having made significant investments in high quality interior fitouts to give them a strong brand profile.”
Bagasra says the offering is one of the most highly regarded commercial properties in Orewa.
“Properties of this calibre rarely come up for sale in the tightly held and popular seaside suburb of Orewa, especially ones occupied by longstanding big brand tenants and in such a strong location as this.
“Standing within the main CBD precinct, it has huge visibility to the major arterial route through the town, which is also the closest road to Orewa beach. There is a pedestrian crossing across Hibiscus Coast Highway right outside the main entrance to the ANZ premises.
“The corner site also faces Florence Ave, another busy road which runs through the CBD, and Hillary Square, known for its statue of Sir Edmund Hillary, which attracts a high level of foot traffic,” says Bagasra.
“The council has immaculately maintained this part of the town centre, home to a number of other banks and high profile national retail tenants, including New World, a medical centre, food and beverage outlets, professional services and government agencies.”
The property generates gross annual rental income of $262,316. ANZ renewed its lease for a further three years in July 2017 and has two further three-year rights of renewal which if exercised would take the final expiry of its current lease through until mid 2026. NZ Post is on its final three-year right of renewal which runs until April 2021.
“Obviously the next owner could investigate negotiating a new lease with NZ Post or may prefer to look at other tenancy options given the location,” says Chan.
“Or the premises could appeal to an owner-occupier wanting to secure a prime town centre spot and prepared to wait until the end of either tenant’s lease to relocate.”
Chan says 2 Hilary Square’s flexible Town Centre zone and strategic location is a development opportunity. “The zoning allows for a range of activities, with increased height allowances designed to facilitate greater office and residential living opportunities on upper floors,” Bagasra points out.
“Being in the town centre, across the road from one of Auckland’s nicest beaches, lends itself to a mixeduse redevelopment making greater use of the site.”