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Gold nugget opportunity awaits mining town commercial property investors

Tags: Commercial Waikato

One of the biggest central retail blocks in the Coromandel township of Waihi – with tenants ranging from a fancy dress shop and dairy through to a high profile charity shop – has been placed on the market for sale

The 680 square metre building sitting on 932 square metres of freehold land fronts onto Rosemont Road - also known as State Highway Two – with a service lane running down the side and rear of the building. The location is currently zoned for commercial use in the Hauraki District Council plan.

All units within the block are leased - generating $65,996 of income per annum from a range of tenancies such as:

  • The Order of St John Northern Region opportunity Shop, which has a current lease running through until 2018 and two further three-year rights of renewal expiring in 2014. The shop occupies 434 square metres of floor space.

  • Rosemont Dairy, which is currently on a month-to-month lease occupying 81 square metres of floor space.

  • Fancy dress retailer Costumes on Rosemont, which is on a month-to-month lease occupying 47 square metres of floor space.

  • Movie Scene DVD rental, which is on a month-to-month lease occupying 118 square metres of floor space..

The land and building is being marketed for sale at auction on October 27 by Bayleys Hamilton. Salesperson Josh Smith said that in its current format, the property had considerable investment upside from either securing longer leases from the existing tenants who were occupying on a month-to-month basis, or by bringing in a new retail mix.
“The three units facing onto 18 – 22 Rosemount Road all benefit from exposure to the town’s main thoroughfare and retail precinct – with neighbouring well-known entities such as KFC, Farmsource, Work and Income NZ, Hauraki District Council, and Waihi Family Doctors,” Mr Smith said.
“Their façades are very much are line with the town’s ‘pioneering’ heritage architecture – from the gabled parapet, through to the single-run lean-to verandah roofing sheltering the footpath underneath and providing a high level of convenience for clientele visiting the tenancies incorporated in the block.”
Hauraki District Council’s planning guidelines for Waihi town centre specify that any new building developments in the zone maintain the current heritage “streetscape.”
“The town centre of Waihi has a vibrant historic streetscape that communicates the town’s history. The range of architectural styles and street landscape provide a sense of stepping back into Waihi’s past as a gold mining centre,” says the council building development advice.

“While there is no precise formula or required elements of design that will result in a design that is sympathetic to the architecture of the streetscape, there are general requirements that should be considered.
“Replicas of an existing street frontage are not encouraged. However, a design that complements and respects the streetscape while reading (appearing) as a new building is encouraged.”
The council guidelines also recommend any new development in Waihi’s central business district should avoid replicating the look or structure of existing historic buildings in the town.
Mr Smith said that from an architectural design perspective, the Hauraki District Council guidelines would allow any potential replacement building on the Rosemont Road site to embrace not only modern construction methods, materials, and floor-plate efficiencies, but also to tastefully embrace Waihi’s gold-mining heritage.
“Under this parameter, and taking into account the straightforward rectangular shape of the building and land, the property could be developed under multiple configuration options. There is also the potential of unit-titling each of the four tenancies and selling those down individually,” he said.
“The continuous street frontage of small to medium-sized buildings – including those within the 18 – 22 Rosemont Road block – helps create the character of the commercial heritage area of the Waihi town centre.

“Various parts of the greater block have undergone extensive redevelopment and additions over the past decade – ranging from a modernisation of the Rosemont Road frontage to the expansion of the rear tenancy to add more floor space.”

The rear of the property containing the St John’s charity shop is the most modern built part of the block, and faces out toward New World supermarket which brings a high volume of vehicle traffic to the location. It has designated parking for up to six vehicles.

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