Leasehold interest in warehouse building

The leasehold interest in the land and building housing one of the Hawke’s Bay’s biggest boating supplies stores is on the market.

Much of the property, at 60-64 Thames St, in the Napier suburb of Pandora, is home to Napier Provedoring Co.

The property consists of three large warehousing and office buildings sitting on 3735sq m of leasehold land across three individual titles.

The largely rectangular property is zoned Main Industrial under the Napier City Council District Plan, and is bordered by the council-owned Ahuriri estuary reserve.

Napier Provedoring Co. is on a lease through to 2021 with two further five-year rights of renewal. The lease generates gross income of $57,500 plus GST, and a rent review is due in

2020.

The buildings at 60 and 62 Thames St consist of two large portal frame warehouses — one of 700sq m and the other of 450sq m — sustaining the open-plan showrooms and workshop and complete with full height doors and lifting gantries.

Warehouses are connected by a shared wall frame, allowing for paletised product stocking on the showroom floor under a 4.62m-high ceiling supported by steel pillars and beams. Office, storage, and staff amenities are at the front of two of the warehouses.

Meanwhile, vacant 64 Thames St is a 460sq m stand-alone single-storey office block with workshops built in

1994. The building is separated from the Provedoring warehouses by a driveway to a sealed parking and hardstand space at the rear of all the properties.

The ground lease for the property is calculated at 5 per cent of the land value per annum. The 21-year ground lease rental of $29,500 plus GST per annum is due for review in 2033.

The multi-faceted Thames St property is now being marketed for sale by tender through Bayleys Napier, with tenders closing on December 5.