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Interest sought for bank branch sale

Tags: Commercial

The land and building housing the Gisborne branch of one of New Zealand’s ‘big five’ retails banks have been placed on the market for sale.


The land and building housing the Gisborne branch of one of New Zealand’s ‘big five’ retails banks have been placed on the market for sale.

The premises at 36 Gladstone Road in the centre of the town’s business district is home to the ANZ bank – located in a 571-square metre building sitting on 1,401 square metres of freehold land.

The ANZ group of companies encompasses some of New Zealand's best-known financial brands - including ANZ, OnePath, ANZ Investments, UDC Finance, and ANZ Securities. ANZ is currently one of New Zealand's largest companies based on profit and assets.

Along with the ASB, BNZ, Westpac and Kiwibank, the ANZ is one of New Zealand’s biggest banking institutions. It has been located at the Gladstone Road premises since the early 1980s. All five of the big New Zealand retail banks have a physical presence in Gladstone Road – which is Gisborne’s high street retail hub.

ANZ Gisborne is currently on a lease at the Gladstone Road premises running through to 2023 paying $140,000 plus GST per annum, with six further three-year rights of renewal. Rental reviews are scheduled into the lease every three years.

The land and building at 36 Gladstone Road are now being marketed for sale at auction on November 27 through Bayleys Gisborne. Salesperson Mike Florance said the open-plan retail banking branch included a mezzanine level with staff amenities and a records storage area.

“Considerable consented strengthening work was undertaken at the property in 2018, and as a result the building now has a new build standards rating of 80 percent,” Florance said.

“The two-storey premises on the corner of Gladstone Road and Lowe Street has a mezzanine level containing office space and staff amenities including bathrooms and a lunchroom, and comes with 22 car parks at the rear of the building.

“Over the duration of its tenancy of some four decades, ANZ has undertaken numerous fit-outs and refurbishments to ensure both its public-facing space and staff areas have remained contemporary and fit for purpose. These works have ensured the building’s integrity has remained in top condition throughout – an aspect potential purchasers will certainly be cognisant of.”

Florance said that as Gisborne’s regional economy diversified away from being heavily reliant on primary sector activity – such as logging or sheep and beef-related farming – the importance of commercial activity in the city had emerged.

Data from the Government’s Statistics New Zealand agency shows that in the year to March 2019, Gisborne had the highest growth in gross domestic product for any New Zealand region – increasing by 7.2 percent on the back of strong contributions from the construction and healthcare sectors.

“As with any New Zealand provincial city, commercial activity - as it has been since they were first populated - has been focused on and around the city’s main street. For Gisborne, that’s Gladstone Road - whose big-brand tenancies include the likes of Farmers, Paper Plus, Carpet Court, Liquorland and Countdown,” he said.

“Having a presence on the busy arterial route which is Gladstone Road ensures businesses not only enjoy a high public profile and are easily accessible to their respective customers, but that they are also well positioned to adapt to any retail changes in the future.

“With the advantage of having a mezzanine level above the street-fronting portion of the building, and with the potential to modify additional access from the car park at rear of the building, the premises at 36 Gladstone Road is in the enviable position of being relatively straightforward to convert into a new mixed-use multi-tenanted format should that decision arise in the future.”

Gisborne District Council’s long-term plan for the city and region, Tairawhiti 2050, forecasts that Gisborne’s current population of around 48,000 people will continue to increase in the coming years, concurrently with a rise in the number of households.

The report identifies tourism as a pillar for economic growth in the region - thriving off the back of cruise ship visitor numbers, and now predicted to benefit from an increase in domestic tourism spending as a result of Covd-19 international restrictions leaving Kiwis ‘holidaying at home’.

The Tairawhiti 2050 discussion paper says that entrepreneurs, backed at both a national and local council level – should be supported to develop not only activities for tourists to participate in, but also backing support serves for the sector.

“Situated in the centre of town, the building for sale at 36 Gladstone Road is perfectly located to be at the heart of commercial and retail activity for quite some time to come – regardless of who occupies the premises long term,” said Florance.

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