Iconic Nelson freehold corner investment
A staple Nelson corner property occupied for more than 60 years in the sunshine capital of New Zealand has been presented to the market for sale with an asking price. On offer is the opportunity to acquire the freehold interest in the land and buildings of 218-228 Songer Street Nelson, anchored by long-term tenants The Turf Hotel and Liquorland.
JLL brokers Harry Fergusson and Nick Thompson have been exclusively appointed to market the property for sale with an asking price of $4,650,000 (plus GST).
Fergusson and Thompson said that the property, which is zoned Suburban Commercial with the Nelson City Council, features 3512 sqm of freehold suburban commercial land with a total building coverage of approximately 1813 sqm, and 40 car parks.
The Turf Hotel comprises a traditional sports/lounge bar with 18 licensed gaming machines, TAB facilities, and a separate bar and restaurant that was rebuilt in 2016, in addition to six guestrooms of accommodation above.
The Turf Liquorland occupies a separate freestanding building on the property and above that is a four-bedroom residential unit on a lease directly with the landlord. All buildings on the property have undergone earthquake strengthening where required.
Fergusson said that with a drive time of only 10 minutes from Nelson city, this significant corner land holding provides healthy returns and split-risk from three income generating leases across four freehold titles on the property.
‘‘This is a rare investment opportunity in a major region of New Zealand,’’ he said.
‘‘In today’s market it is uncommon to be able to purchase an asset of this nature anywhere in the country yielding seven per cent with long-term established tenants, let alone on a high-profile corner site with significant landholding.’’
Thompson said it is not just the asset’s split risk nature that makes it a compelling investment.
‘‘Prospective buyers can act with some confidence as the property comes with an anchor tenant that has been in occupation for over six decades while the other tenant took out a 20-year lease from August 2012,’’ he said
‘‘Ample car parking and huge corner exposure further adds to the attractiveness of the opportunity.
‘‘An incoming investor has the opportunity to take advantage of an established landmark hotel which benefits from robust business and proximity to a range of strong demand drivers.’’
Interested parties should contact the sole agents for more information, said Fergusson, who said that there has already been significant interest in the first week since bringing the property to market, which he puts down to the competitive pricing.
‘‘The Nelson/Tasman region is one of the country’s most desired destinations and strongest growth cities,’’ Fergusson said.
‘‘Iconic hospitality and accommodation assets such as this are tightly held and this trend looks set to continue.’’