Paraparaumu property performs jolly well

The Paraparaumu property is anchored on a long term lease to the Jolly Pub tavern.

A well-performing Paraparaumu commercial property, which is leased to a popular neighbourhood pub and comes with additional land for potential development, is for sale by auction.

The property at 91 Mazengarb Rd is anchored by the Jolly Pub with the tavern complex occupying the roadside frontage of a 4601 sq m site around 4 kilometres from the Kapiti Coast's main commercial shopping centre at Coastlands.

In addition to the tavern tenancy, Spark New Zealand and Vodafone have cell phone towers at the southern end of the property contributing to the total net annual income of $120,087.46 plus GST.

Stephen Lange of Bayleys Wellington, who is marketing the property for sale by auction on December 3 at Bayleys Wellington, says the tavern is known as The Jolly by locals and has a good mix of revenue streams.

"Given the property's location, and future opportunities, this commercial offering would be difficult to replicate," Lange says. "An investor looking to purchase the land and buildings or sale can take heart from having a committed tenant, with Jolly Pub operation being a focal point for the local community."

The Jolly Pub with bar, restaurant, gaming machines, TAB and generous patron parking has a 16-year lease from 2006 and two, six-year rights of renewal taking the final expiry through until 2034.

"The good spread of risk across three leases along with the added carrot of unharnessed development potential makes this property one out of the box," says Lange.

"The exciting part of this commercial offering is the large undeveloped piece of land to the north of the pub which was part of a land swap with the local council in the 1990s.

"We understand that this land is being rezoned by the council from 'open space' to 'commercial service' in line with the balance of the site which opens up development possibilities in an area starved of retail and service premises.

"The income off the property would allow a new owner to pursue development options with confidence, while residential growth in the immediate area adds another layer of assurance," Lange says.

Lange believes the undeveloped land has the potential to support retail offerings such as a hairdresser, convenience store, fashion boutique, and coffee bar along with office space for small business use.

"There is significant residential development happening in the immediate area which will also give confidence to a new owner looking for a property with upside," he says.

"Paraparaumu is extending northwards in the direction of this property and, due to the lack of any other commercially-zoned land in the area, it would be difficult for any competitor to enter the market and replicate what is on offer here."

An initial evaluation procedure (IEP) for seismic integrity puts the building at 100 per cent of new building standard (NBS).