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CB Richard Ellis has followed the opening of its new commercial and industrial real estate office in Hamilton a few weeks ago by offering seven prime investment assets in its first Waikato pre-Christmas property auction.
The managing director of the new Hamilton office, Theo de Leeuw, says a variety of properties are being offered for sale in the office's first auction, which takes place at 11am on Wednesday at the offices of CB Richard Ellis at 155 Te Rapa Road, Hamilton.
The seven properties include solid tenancies like Repco, Smiths Sports Shoes, a childcare company and a multi-tenancy building, says de Leeuw.
A 423 sq m property in Morrinsville, currently leased by Repco and producing net annual rental income of $56,700, is being marketed by Karl van Gisbergen. Located at 7 Studholme St, the property has a prominent location with 15,000 vehicles passing daily.
Valuers say recent leases suggest there should be good rental growth. Nearby businesses include Video Ezy and New Zealand Post.
The property is offered with a new five-year lease, commencing from January 2008.
Prominent Hamilton city buildings being offered include Smiths Sport Shoes premises in Victoria St, a property on the corner of High St and Commerce St, and 4 Hill St.
The Victoria St premise is being marketed by Mike Neale and Kara Gerrand, while the High/Commerce St site is being sold through van Gisbergen.
Currently leased by Smiths Sports Shoes, 570 Victoria St is only walking distance from Hamilton's largest retail centres including Centreplace and Downtown Plaza.
Smiths Sports Shoes have operated from their Victoria St site for more than 15 years and have just committed to a new six-year lease, says Neale.
Rental for Smiths Sports Shoes is $48,500 per annum net and an upstairs tenancy is adding about $60,000 per annum, giving the property a total annual rental flow of $108,500.
Neale says the investment, while offering a strong cash-flow opportunity, would suit investor/speculators because the vendors have indicated that they are moving on.
Also being offered through Neale and included in the auction is the property on the corner of Commerce St and High St in Frankton, a prime retail corner on the V8 Supercar circuit.
This recently refurbished Art Deco style building is located in one of the more rapidly improving commercial districts in Hamilton.
The Frankton retail area has been through a dramatic overhaul in the last five to 10 years with many regarding Frankton as Hamilton's version of Auckland's Ponsonby. The V8 Supercar event is only going to increase the significance of this area to the city, says Neale.
The corner site property is currently occupied by Village Organics. The tenant is on a four-year lease returning $27,500 per annum net of outgoings.
In conjunction with Brad Chibnall, Neale is also marketing the property located at 4 Hill St.
Strategically located close to Hamilton Girls High School and Wintec, this standalone building consists of 32 rooms and plenty of on-site car parks.
There is an opportunity for a potentially high yield with this property as there appears to be good rental growth prospects, Chibnall says.
He says the immediate business area includes several medical service providers and other professional services firms such as accountants and lawyers.
Another property on offer at the same auction includes the Child Care on Devon Rd which currently returns $50,880 per annum net.
The property which is being marketed by van Gisbergen is a modern building comprising 691 sq m with area for expansion on a total land area of 2147 sq m.
Van Gisbergen states that the premises are modern and are well positioned to suit the tenant, particularly in respect to supporting their established customer base.
Devon Rd forms part of a strong light industrial area close to Hamilton's CBD which is proving popular with investors.
Also on offer at the December auction are two industrial property opportunities.
The first industrial property is Unit 5, 48 Tawn Place, a 235 sq m industrial unit being marketed by Russell Smith and van Gisbergen. This high stud unit was recently constructed and is ready for occupation. It would suit a multitude of light industrial uses including distribution, warehousing and manufacturing.
The unit is also close to a recently opened Vehicle Testing NZ station, a Firestone tyre facility and the Cock & Bull pub and restaurant.
Smith says the property is being offered on a vacant possession basis and best suits owner-occupiers wishing to position their business in the heart of Te Rapa's expanding industrial area.
The second of the industrial properties, a disused warehouse in Waihou, Te Aroha, is being marketed by de Leeuw.
An estate sale, the property comprises five titles covering 2200 sq m with a warehouse of 620 sq m. De Leeuw says this property provides the opportunity to subdivide and redevelop into a number of industrial or business uses.
"Each of the properties on offer has its own unique advantage," says De Leeuw.
