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Chance to cash in on changing face of Te Rapa

Tags: Commercial

Two adjoining properties with development options close to The Base shopping centre in Hamilton are among 14 Waikato commercial properties featured in Bayleys’ latest Total Property portfolio.

The offerings at 1000 and 1006 Te Rapa Rd have a combined land area of 2,500 sq m and will go up for auction in Bayleys’ central Hamilton premises on Thursday, September 20, unless sold prior to that date

“The properties are being offered for sale with vacant possession on behalf of different vendors so will be auctioned separately but obviously there will be the opportunity for one party to bid for both to make the most of this prime location,” says Alex ten Hove who is marketing the properties with Bayleys Waikato colleague Mike Swanson.

Ten Hove says they are surrounded by major retail complexes with The Base Te Awa shopping mall, described as New Zealand’s largest shopping and leisure centre, and a Mitre 10 Mega store on the opposite side of the road and a Countdown supermarket and K Mart store a short distance away on the same side of Te Rapa Rd.

“It is also appears likely that a big block of vacant land next door and opposite Countdown will be redeveloped into a large format retail complex,” ten Hove says.

“The two sites for sale are located on a high visibility route in Hamilton’s fastest growing retail and industrial area, with a brilliant passing traffic profile exposing business occupiers to a large volume of vehicles daily.”

The larger of the two offerings is located on 1500 sq m of land at 1000 Te Rapa Rd. It has operated as The Highway Fruit and Vege business for the past 30 years and comprises a main retail building of 320 sq m and two storage sheds totaling 120m sq m at the rear.

Swanson says the level, rectangular shaped property has worked well for the business which was established by the vendor and is reflected in the longevity of its occupancy.

“The site has approximately 30 sq m of frontage to Te Rapa Rd which easy access for vehicles heading north. There is also plenty of car parking for customers with 15 parallel parks along the northern side of the building.

“It is well suited to convenience retailing, with high volumes of passing motorists providing a good level of ‘drop in” business. Potential future uses, subject to obtaining resource consent, could include a fast food, fuel or some other type of service business looking for a site that offers plenty of exposure and profile.”

He says the existing main building could be repurposed and possibly expanded and leased out or the underutilised site could be completely redeveloped possibly in conjunction with the neighbouring property.

That offering at 1006 Te Rapa Rd encompasses 1012 sq m of land and approximately 300 sq m of industrial buildings. It has operated as David Irving Motors’ automotive repair and servicing business for the last 45 years.

“It also benefits from superb profile to the large amount of traffic that travels along the four-lane Te Rapa Rd which along with the nearby, newly opened Waikato Expressway provides the main northern route to and from Hamilton,” says ten Hove.

“When David Irving brought the property to establish his business there in the 1970s, Te Rapa was a predominantly rural area with a large air force base. This was developed into The Base shopping centre following the transfer of the land’s ownership to Tainui in the 1990s as part of the Crown’s treaty settlement process.

“The ongoing development of The Base, which has also stimulated other complementary developments, has completely transformed Te Rapa into a major retail destination, particularly for bulk retailing.”

The Base comprises the original outdoor strip mall as well as the more recent Te Awa large enclosed shopping mall. It has close to 200 stores, a Hoyts Cinema complex featuring the largest silver screen in the country, a wide range of food and beverage outlets and over 3000 carparks.

Also nearby are the Boulevard, a homeware-focused large format retail centre opposite a big Harvey Norman store, a number of major car franchises and the Te Rapa Gateway industrial park.

Swanson says Te Rapa has also continued to grow as Hamilton’s main industrial hub on the back of a substantial amount of greenfields land and its pivotal position, close to the motorway, in the “Golden Triangle” of Auckland, Tauranga – both within 90 minutes’ drive – and Hamilton.

He says much of Hamilton’s future growth will be to the north and east of the city as development is pulled in the direction of the strong economic nodes of Auckland and Tauranga along the connecting communication and transport corridors.

“Te Rapa will continue to be a key part of this development which augurs well for investors and businesses purchasing well located property in this precinct. The two offerings at 1000 and 1006 Te Rapa Rd therefore provide an opportunity to tap into this growth through immediate redevelopment or could be viewed as a long term hold and leased out in the short to medium term in the expectation that land values will continue to grow in this location.”

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