Syndicated city premises offers solid leasing
A syndicated property at 308 Barton St is Hamilton’s latest central city investment offering.
NZX-listed Augusta Funds Management, which is based in Auckland, has managed the property for the past five years.
The property has a valuation of about $5.45 million.
The property had two tenants, said Theo de Leeuw, director of industrial sales and leasing at NAI Harcourts.
JB Hi-Fi Group (NZ) has two years to run on its 12-year lease from March 2008 with rights of renewal for two further terms of five years each. Rental income was $423,511 a year.
Wilson Parking New Zealand has a 10-year lease from May 2017 with rights of renewal for a further 10-year term. Rental income was $118,031.90 a year.
‘‘This is a building with a good track record and they have been operating from the site for some time now,’’ he said.
Rebecca Bruce, sales and leasing at NAI Harcourts, said: ‘‘The revitalisation of the CBD has created strong tenancy inquiries in this area, and there has been some rental growth over the past two years.’’
Several new developments and redevelopments were planned or under construction in the area, including a new ASB Bank building, and a tenancy refurbishment for AMI, which was relocating to Barton St.
A hotel development was under way on a site adjoining 308 Barton St with consent for 147 rooms and was going through the process of appointing an operator.
‘‘The presence of a hotel usually attracts other retailers,’’ de Leeuw said. ‘‘This is a strategic location. Barton St is a thoroughfare at the centre of a major office population close to the inner city.’’
The property in the downtown area is being sold in a tender process. The 2075-square-metre site was on the eastern side of the road at 308 Barton St, and occupied by tenants JB Hi-Fi and Wilson Parking, returning $529,460.01 a year, with fixed rental growth.
The car park was situated alongside the building and on the upper-floor roof area, offering 76 parking spaces.
A thoroughfare strip at ground level gives access to both parking areas, which were well used as parking was at a premium.
The ground floor measured approximately 1476sqm and the upper floor car park 1593sqm.
Constructed in 1993 of predominantly reinforced concrete, the building had a high seismic rating. Retail space was approximately 1051sqm, and storage space was approximately 425sqm.
Large-office tenancies nearby included Fonterra and Norris Ward McKinnon House, Centre Place Mall and the Tower building above it.
Surrounding local and national retailers included Bivouac Outdoor, Torpedo 7, Caroline Eve, Annah Stretton and Kilt Clothing.
‘‘The revitalisation of the [Hamilton] CBD has created strong tenancy inquiries in this area.’’
Rebecca Bruce, NAI Harcourts