KEY POINTS:
A Hawkes Bay art-deco cinema building in Hastings, which has been showing movies since it was built after the 1931 Napier earthquake, is for sale with a sitting tenant until at least 2012.
The four-screen cinema property in Heretaunga Street East is the only multiplex complex in Hastings.
Originally known as the State Cinema, it was built by the Donovans, a prominent local family, between 1931 and 1933. It was contructed in two parts, the front section was erected in 1931 immediately after the earthquake and the rest two years later.
Eoin Carty, of Bayleys Hawkes Bay, who is marketing the property in conjunction with Adam Ryan of Bayleys Napier office, says the building underwent major alterations in the mid-1990s when Hawkes Bay Multiplex Cinemas took out their initial lease.
The 1612 sq m, two-level building has retained its art deco facade and the modern structure within its shell is fully air-conditioned, has a sprinkler fire system and an 11-person lift. It has a total seating capacity of 722.
Two of the cinemas are 490 sq m each, one is 475 sq m and the fourth 169 sq m seating 119 people.
Carty says Hawkes Bay Multiplex Cinemas, which also operates the Napier movie theatre, has five years to run on its initial 18-year lease and three rights of renewal for a total of 15 years, which would mean it could be showing movies there until at least 2027.
"The complex has a very efficient layout with a central automated projection room. One person can operate all four cinemas at once," he says.
The property, on 944 sq m of land, produces current net annual rental income of $205,000.
Carty says that, given the cost of building a new multiplex cinema and the location in the heart of the Hastings retail area, the Heretaunga Street property is expected to enjoy a long movie life in Hastings.
The Hastings District Council has substantially upgraded Heretaunga Street, to the tune of more than $1 million in recent years, with new street lighting, pavement stones and planters and it is now a pleasant shopping precinct," he adds.
The upgrade has attracted new retailers and neighbours include DTR, the Visitor Information Centre, Farmers, ANZ Bank and Westpac.
Nearby, recent developments which bring large numbers of shoppers into the eastern CBD area include Briscoes, Rebel Sport, Harvey Norman, Mitre 10 Mega and Russell Retail Development.
Carty says confidence in the Hawkes Bay retail market is strong. A recent retail survey by Logan Stone showed occupancy rates still at historically high levels. The survey covered the core town centre streets in each of the region's major retail precincts.
"The Hawkes Bay retail market remains buoyant with an active leasing market continuing to attract national brands to the region," he says.
The Hastings Cinema, which is owned by a small syndicate of Hawkes Bay investors including former All Black captain Taine Randell, is for sale by negotiation.
