Three accessible retail investments with strong tenant covenants are on the market in Queenstown set against one of the most dramatic vistas and in one of the fastest growing locations in New Zealand.
The property at 24 Hawthorne Drive consists of three separate units on the ground floor of the Ramada hotel complex in Remarkables Park, providing a sound, split-risk investment for prospective buyers.
Marketed by Ellie Martin, Richard Larman and Deborah Dowling of CBRE, the property is due to be sold at auction on 23 November 2017 unless sold prior.
Ellie Martin says that with a low stock of commercial properties in Queenstown currently, the property is expected to draw strong interest amongst overseas, national and local investors.
“This is a great opportunity to purchase an accessible asset in an internationally recognised city and tourism hot spot. With a lack of investment property stock available for sale, opportunities like this to get into the Queenstown property market with a bite size investment rarely last long, especially at these price ranges.
“It is hard to fault the location of this investment. At the heart of The Remarkables Park masterplanned community, 24 Hawthorne Drive is exceptionally located for the wider Queenstown urban area, within easy reach of the airport and the State Highways to the north and south.
“Not only will tenancies benefit from proximity to the airport and being part of the Ramada Hotel complex, and the assured patronage that comes from that, but it is also perfectly located to capitalise on what is set to become Queenstown’s new town centre and service hub.”
Martin says that hundreds of homes are earmarked for residential developments within two kilometres of the property. “In the last six months alone, we’ve seen plans announced for a new 6,000sqm medical facility and work get underway on a new $5.5 million 992sqm office building on Hawthorne Drive. In February next year, a new secondary school is due to open doors to 1,800 students”
“All of this points to a rapid local population growth in this part of Queenstown and 24 Hawthorne Drive will be one of the first locations to benefit.”
The total leasable area of the three units at 24 Hawthorne Drive is 530sqm, delivering $300,900 net income per annum.
The first (Unit 2) houses two tenants on six-year leases – car rental company Aerodrive, returning $32,000 pa net on a 58sqm site, and physiotherapy clinic Queenstown Body Works, returning $51,400 pa net on an 88sqm site.
The second unit (Unit 6) is tenanted by Strada Café on an eight-year lease, on a 228sqm site returning $128,400 pa net.
The third unit (Unit 7) also houses two tenants – a financial services company, Loan Market, which is on a six-year lease for a 95sqm site returning $52,550 pa net, and Optometrist business, Queenstown Eye, which is on a five-year lease for a 61sqm site returning $36,550 pa net.
Richard Larman says that the property offers an affordable investment size, very attractive rental terms with personal guarantees, built-in rental growth, and all in a region that is glowing in the wake of a continuing surge in economic growth.
“Queenstown airport experienced 1.86 million visitors last year with an increase of approximately 5.2% in visitor growth from 2016 – 2017.According to Infometrics, the local economy grew 9.6% in 2016 compared with 2.5% across New Zealand. The population of Queenstown currently sits circa 34,700 people and is trending upwards at a growth rate of 7.1%.”
“With increasing tourism numbers and associated activity, the region is benefitting from strong economic growth with a focus on construction to support the demand. The low supply of stock and high investor demand has resulted in a market that is showing good buoyancy.
“On that basis, an opportunity to secure brand new units in the Queenstown area as a freehold unit title investment with long term tenants and good covenants in place is one that will go fast.”ABOUT CBRE GROUP, INC.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com..
