Nelson retail property in the spotlight

The property at 2 Hastings St, Nelson, is indicated by a blue border. Photo / Supplied

In Nelson a substantial, strategically-located retail property is on the market, with a long lease to an international tenant.

Spotlight Nelson occupies a commanding corner site at the gateway between the fast-growing city's CBD and the popular residential area of Washington Valley.

The 6768sq m landholding at 2 Hastings St is on a long-term lease to well-known retailer Spotlight,earning about $550,000 in net annual rent. More than 12 years remain on the current term.

Low site coverage of only 36 per cent allows for future expansion or redevelopment, while Inner City Fringe zoning enables higher density development of up to 12m in height.

Colliers International is marketing the property for sale by deadline private treaty, closing 4pm on Wednesday, May 1, unless sold earlier.

Geoff Faulkner, managing broker at Colliers Nelson, says the region's impressive market fundamentals underline the property's desirability as an investment.

"Nelson's strong economic growth and lifestyle opportunities have contributed to a sustained, demand-driven surge in commercial property investment and development. This is underpinned by strong residential growth and the economic success of our tourism, horticulture, forestry and fishery sectors."

Peter Herdson, capital markets director at Colliers International, says Nelson is among the South Island's most desirable locations and attracts strong migration from New Zealand and offshore.

"The region's steady growth has bestowed Nelson with some of the best investment fundamentals in the country and hence, we expect strong interest."

The property is within an established retail precinct that is popular with national tenants including The Warehouse and Countdown.

It comprises a 2466sq m large-format retail building, constructed in the 2000s, on a freehold site with plentiful sealed, on-grade car parking. Access is via a wide entrance on Hastings St, opposite Pioneers Park.

The gently sloping site is at the corner of Hastings St and St Vincent St, directly opposite The Warehouse.

Hastings St is one of the main arterials between Nelson's CBD and the popular, growing residential area of Washington Valley.

Tenant Spotlight is an international retailer specialising in homeware, fabric and craft goods.

Founded in Melbourne in 1973, the company now has stores across Australia, New Zealand and Asia employing more than 6700 people.