Multiple income streams enhance investment

77-87 Tory St, Wellington
77-87 Tory St, Wellington

A fully-leased high profile commercial property on a corner site in Tory St, Wellington, with Harvey Norman as anchor tenant, has been placed on the market for sale by way of tender.

The property is around 100 metres from Courtenay Place and has three street frontages; the main and busiest face to Tory St, a long frontage along Tennyson St to the north and a similar profile to Lorne St to the south.

Grant Young of Bayleys Wellington says the ground and first floor levels of the large freehold  buildings are for sale.

“The property has four retail tenancies on the ground floor plus generous adjoining parking for 24 cars, while the first floor includes a storage complex, offices and six, one-and two-bedroom apartments.”

The Galleria apartment complex, which is situated above this property, does not form part of the sale offering.

“It has a very good A-grade seismic rating, a strong tenant covenant underpinned by retail giant Harvey Norman and supported by several other committed tenants, and location wise it’s a winner,” says Young.

“With a current net income of $590,802 plus GST per annum, investors will make their own decisions around value.”

Young says with the New Zealand Institute of Economic Research forecasting strong economic growth for the capital over the next five years, out-of-town investors could see value in adding a strategically-placed Wellington property such as this one to their portfolio .

“We anticipate strong interest given the scarcity of properties of this ilk in central Wellington currently and expect that when the tender box is opened on December 2, our vendors will be well placed to sell.”

The property has a floor area of 3,401 sqm and sits on a 3,364 sqm site.

Harvey Norman has occupied the majority of the ground floor for around 10 years and has just renewed its lease for a further four years, with additional rights of renewal.

The other retail tenancies are occupied by the Asiana Cooking School, an Asian produce shop and Capital Care Health Centre. The lease expiries range from 2018-2020, with additional rights of renewal.

In addition, a Gisborne cafe business which specialises in eastern and central European cuisine and which operates a popular city “sandwich run” has been placed on the market for sale.

Cafe Dunay, based within leased premises at 48 Peel Street, was set up by owners Alona and Boris Nogtev  who come from Kyrgyzstan and the Ukrainian-Polish border.

“Ideally, the handover of this business to new owners should coincide with the start of busy summer season,” says Colin McNab of Bayleys Gisborne, who is marketing the cafe business for an asking price of $75,000 plus GST.”

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