Landmark bank branch for sale

The land and building housing a landmark bank branch in the heart of Rotorua’s city centre have been placed on the market for sale.

The two-storey freehold property on a prominent corner site at 1251 Fenton Street is occupied by anchor tenant ANZ bank, plus a bicycle retailer and a local accountancy business – generating total net annual rental income of $253,932 plus GST per annum.

ANZ - which has occupied the site for 30 years - leases 1,080 square metres of high-profile ground-floor space, paying total annual rent of $204,234 plus GST per annum. Its current three-year lease runs to 2022, and has four further three-year rights of renewal. The lease terms include annual two percent fixed rental increases.

Electric bike retailer Mohawk Adventures Limited leases 143 square metres of ground-floor space, generating rental income of $19,000 plus GST per annum. Its existing lease runs through to 2023 and has three further four-year rights of renewal.

A further 277 square metres of first-floor office space is occupied by local accountancy firm Avid Business Agency Limited, which recently signed an eight-year lease with two further three-year rights of renewal.

The building had been seismically strengthened to an Initial Evaluation Procedure rating of 75 percent of new building standard, and is zoned City Centre 1 under Rotorua Lakes Council’s district plan.

The property at 1251 Fenton Street is now being marketed for sale jointly by Bayleys Rotorua and Bayleys Tauranga. Salespeople Mark Slade, Mark Walton and Brei Gudsell said the property comprised a two-storey building with a floor area of approximately 1,499 square metres on 1,589 square metres of freehold land. The site is supported by 11 offstreet car parks across the three tenancies.

Ms Gudsell said. “With its outstanding tenant covenant with secure rentals on three to eight-year terms, the property will interest buyers seeking a passive investment.”