Chance to secure chunk of CBD
One of Hamilton’s most prominent central-city landmarks – comprising a boutique heritage hotel and numerous street-level food and beverage eateries – has been placed on the market for sale.
The substantial inner-city block on the corners of Victoria, Collingwood and Alexandra streets – known as the Wesley and Methodist Blocks – encompasses the four-star VR Hamilton Hotel as its anchor tenant in the heritage-listed portion of the property together with backpackers’ accommodation.
The combined properties cover a total land area of 4044 sq m contained in two titles, with three road frontages. The freehold tenure of the property is owned by the Hamilton Methodist Church Trust and the property is subject to a 150-year ground lease.
The imposing four-storey 237 Victoria St address containing the
39-room VR Hamilton Hotel complex, along with the backpackers’ rooms and amenities, has a Category A heritage listing.
Originally constructed in the early
1900s as the Wesley Chambers, the upper two floors were added in the
1910s to become was the first multistoreyed building in Hamilton constructed of reinforced concrete, and the first to have a lift.
In total, the majority-leased block for sale sustains 16 tenancies – generating a combined annual net rental income of approximately $711,000.
Among the retail tenancies within the block are multiple ethnic eateries and fast-food outlets, a tattoo studio, a foodservice operations supply company, a convenience store and several small professional services companies occupying office space.
Expiry leases for the smaller tenants stretch as far out as 2031 but include demolition clauses.
Combined, the various buildings within the block provide some 7630 sq m of mixed-use space. The 237 Victoria St portion of the block sustains the hotel and its three function areas, and ground-floor retail – totalling some 3580 sq m. The 7–29 Collingwood St portion sustains the 60-bed backpackers’, offices and street-level retail outlets, totalling some 4050 sq m.
The property has covered parking for 25 cars at the rear of the building, accessed from a service lane off Alexandra St. Most of the carparks are used by hotel and backpacker guests. Substantial additional short-term parking is available on all three streets immediately outside the premises.
The buildings and leasehold land interests have been placed on the market for sale by expressions of interest with the process closing on April 15.
The property is being jointly marketed for sale by Bayleys Auckland and Bayleys Hamilton. Salespeople Layne Harwood, Paul Dixon and Steve Pett said the vendors would also consider selling the hotel and backpackers’ business as a going concern if potential buyers were interested.
“The historic block represents a diversely tenanted split-risk opportunity right in the middle of Hamilton, with rental income upside when vacant premises within the block are tenanted,” said Harwood.
“These lengthy ground lease term allows any potential new owner the opportunity to look at redeveloping some of the upper floor spaces to create new commercial premises.”