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Bank buildings for sale generate plenty of ‘interest’ from property investors

Tags: Commercial

A trio of buildings housing high street banking operations throughout both the North and South Island have been placed on the market for sale.


The three locations are tenanted by three of New Zealand’s foremost retail banks – with banks renown for being ‘cornerstone’ tenancies in regional towns and provincial cities throughout the country.

In the North Manawatu township of Feilding, the Heartland Bank branch at 83 Fergusson Street is being marketed for sale by tender through Bayleys Palmerston North, with tenders closing at auction at 4pm on June 14.

Bayleys Palmerston North salespeople Karl Cameron and Lewis Townshend said the 370 square metre bank building had a 65 percent New Building Standard (NBS) rating, and sat on 403 square metres of land.

Mr Cameron said the well-presented freehold property has been occupied by Heartland Bank for four years and was currently on a three-year lease expiring in 2020 with two further two-year rights of renewal.

As well as Heartland Bank, the building is also tenanted by fashion retailer Shanton - which is currently operating on a lease expiring in 2021 with one further three-year right of renewal and one six-year right of renewal. Combined, the two tenancies for the Fergusson Street property generate a net rental of $53,000 plus GST per annum.

Meanwhile, in the South Manawatu township of Levin, the BNZ branch within 213 Oxford Street is being marketed for sale at auction at 11am on June 28 through Bayleys Wellington.

Salespeople Stephen Lange and James Higgie said fashion retailer Postie and power distribution lines maintenance company Electra were also tenants in the 1400 square metre building being listed for sale.

BNZ Bank is currently on a three-year lease expiring in 2021 with three further three-year rights of renewal – generating a net rental of $63,932 plus GST per annum.

Postie is on a lease expiring in 2020 and generating a net rental of $61,653, while Electra is on a month-to-month lease paying net rental of $6020 per annum for a small storage unit in the building. Mr Lange said the property’s location in the centre of town meant its retail tenants enjoyed high public visibility and foot traffic.

In the Canterbury township of Amberley, the land and buildings at 113 Carters Road housing the Westpac branch goes up for auction at 11.30am on May 31 through Bayleys Canterbury.

Salespeople Nick O’Styke and Ben Carson said the 248 square metre bank building had a 71 percent New Building Standards (NBS) rating and sat on 1,012 square metres of land in the middle of town.

Mr O’Styke said the freehold property has been occupied by Westpac bank for 16 years, and was currently on a three-year lease expiring in 2020, with a further three-year right of renewal – generating a net rental of $61,650 plus GST per annum. Carters Road forms part of the national State Highway One network.

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