Property offers investment growth, flexibility
Up for sale by treaty deadline is
146 Collins Rd, which has been a successful home to many iconic Hamilton businesses from medical and furniture business, Restwood, in the 1990s and early
2000s, to Suite3 which imported and sold designer furniture.
It was not uncommon for
Suite3 to attract more than 700 people to its monthly flash sales over a Friday, Saturday and Sunday. Most recently, though, it has become the national call centre for Torpedo 7 and 1-day, which is owned by The Warehouse Group, which occupies the front third of the building and being an existing tenant, has just renewed its lease until August 2024.
‘‘Situated on nearly a hectare of freehold industrial land and ideally located between the Hamilton CBD, Frankton, Te Rapa and just off State Highway
3 which leads to the commercial and industrial precinct of Titanium Park at Hamilton Airport, this location experiences little or no vacancy due to its catchment and location,’’ says Mike Neale.
Guy Howard-Willis, who part owns the property, has had an affinity with it over the years, having owned (all or in part) or sold it in varying capacities several times over the last 20 years or so. ‘‘I am pretty sure I won’t be buying it back again; but I have said that before,’’ he says.
The property also includes a single head lease over the balance of the property, which consists of 11 industrial units ranging in size from 180sqm to
990sqm.
‘‘Having two leases providing a total net income of $449,100 with a guaranteed rise to
$463,624 in August 2020, this investment provides for growth and flexibility,’’ says Sean Stephens, who is also marketing the property.
‘‘Having a ground floor area of some 5540sqm, this equates to a rental rate of only $84sqm, including the 890sqm of office space.’’
The industrial units, which have evolved and grown since 2016, include the likes of Foodstuffs, Manta 5 and Great Doors. As demand increased and as part of redevelopment of the space, seismic strengthening was undertaken to take the building to 67 per cent of National Building Standards.
The underlying land and building value, with generous onsite parking and room for rental growth, should appeal to investors seeking returns well beyond what the major trading banks are offering, says Stephens. ‘‘The new owner can sit back and enjoy the returns for the best part of five years, spending time to understand the property and realise its future potential.’’