Hastings property is good fit for investors
The Hastings CBD land and buildings occupied by the popular CityFitness gym are on the market with Bayleys, and agents say investment by public and private entities in the area gives additional confidence to the investor market that is homing in on Hawke’s Bay.
Hastings District Council has invested $40 million in its flagship Toitoi—Hawke’s Bay Arts and Events Centre which further underpins the credentials of the fullyleased large-format retail offering at 340 Heretaunga St East.
The reopening of the city’s historic Municipal Building and Opera House as the arts and events centre has put the spotlight on the eastern quadrant of the CBD, with revitalised business offerings and a proactive strategy set to drive activity in the area.
The well-presented A-grade modern building occupied by CityFitness has a seismic rating assessed at 95 per cent of new building standard, and has a 2675sq m building footprint including verandas and canopies.
The property also includes 28 dedicated car parks plus additional parking, and occupies a freehold 3643sq m site with dual street frontage giving it extensive visibility and profile.
The property lies at the gateway to Hastings CBD from Havelock North and is directly opposite New World Hastings.
CityFitness has a long-term lease with 12 years left to run, rights of renewal through until 2046, and rent reviews every two years to a combination of market and CPI benchmarks. The property returns an annual income of $485,384 plus GST.
The building has minimal fitout and is internally partitioned to provide a large central open-plan area, two partitioned offices, rubbish store, amenities and two open-plan rooms at the rear used as a ride studio and exercise area.
Sunil Bhana of Bayleys South Auckland is marketing the property with Mike Houlker of Bayleys Auckland Central and Michael Su of Bayleys Napier, with tenders closing Thursday 16 June unless sold prior.
Bhana says investment opportunities of this calibre seldom come to the market in Hastings and interest is strong.
“This property has all the hallmarks of a quintessential bottom drawer investment, with the long-term lease being a real drawcard. The long-term lease credentials, pivotal location, quality building and the growth dynamics being seen in Hastings city, all underscore the value proposition for an investor looking for a healthy return on capital and passive ownership.”
Su says there’s been a raft of new investment in Hastings that will give assurance to both local and out-of-town buyers. “Looking at Hawke’s Bay in a wider context, there are new initiatives under way at the port, Meridian is building a $395 million wind farm north of Napier and horticultural heavyweight T&G Global is investing $100 million into a new automated packhouse in Whakatu.”