A large, high-profile corner site occupied by national-brand tenants in the heart of the Hastings retail precinct will appeal to a range of buyers searching for premier assets with steady cashflow from a long-term lease.
244 Heretaunga Street West in Hastings has a total net lettable area of 6,689sq m across two storeys on a prominent, 3,839sq m landholding that has multiple street frontages and returns approximately $1,470,000 plus GST in total net annual rent.
Department store Farmers is the anchor tenant of the freehold property, leasing 6,502sq m across both floors plus nine car parks, while TSB has a 187sq m ground-floor tenancy.
Farmers’ lease runs for almost 11 years, until July 2032 and there is a CPI rent review scheduled for July 2023 with further reviews set for every three years thereafter. Their lease includes two further rights of renewal for five years each. TSB’s lease began in 2007 and has a final expiry of September 2022.
Colliers Director Danny Blair has been jointly appointed alongside Bayleys Brokers Sunil Bhana, Mike Houlker and Daniel Moffitt to market the property for sale by deadline private treaty closing at 4pm on Wednesday 29 September, unless sold prior.
The building is zoned Central Commercial by the Hastings District Council and was constructed in 2011 with part of the former facade of the Roach’s Building retained. The property commands a strong street presence on the corner of Heretaunga Street West and King Street.
The Farmers Trading Company Ltd, trading as Farmers, is a well-known New Zealand department store chain, which has been operating for more than 100 years. They have 59 stores across the country, specialising in family fashion, beauty, homewares, furniture, large appliances, and whiteware.
TSB Bank Ltd, trading as TSB, is a New Zealand bank with headquarters in New Plymouth. It has 25 branches across the country and is owned by the TSB Community Trust, which distributes the income it receives from the bank back into the New Zealand community.
Blair, Director at Colliers Hawke’s Bay, says it is incredibly rare to see a property of this size and scale with blue-chip tenants come to the market in the region.
“Demand for commercial assets in Hawke’s Bay has risen in recent years and this property presents a remarkable opportunity to acquire one of the premium sites in Hastings,” Blair says.
“The property will provide the new owner with long-term security due to the strong tenant covenant and favourable lease terms with the anchor tenant.
“This property is one of the most notable to hit the market in Hawke’s Bay in years.
“This building is a jewel in the crown of the ‘200’ block in Hastings that generates high foot traffic and is strategically positioned among a host of national retail brands.”
Moffitt, Commercial Broker at Bayleys Havelock North, says the property presents exceptionally well.
“The high-profile premises with two retail levels are linked by up and down escalators and two lifts providing readily available access,” Moffitt says.
“In addition to this, the retail premises are highly functional and are well-suited to the tenants’ needs, serviced by modern amenities, offices, lunchroom facilities and back of house storage areas.
“Properties of this scale in this area are tightly held and rarely come to market. This will be a highly sought-after asset for any purchaser looking for long-term stability from such a premier property investment.”
