The land and building housing the Westpac bank branch in the Waikato township of Te Awamutu have been placed on the market for sale.
The premises at 98 - 106 Alexandra Street on the corner with Market Street - is in the centre of the town’s business district, and features a 505 square metre building sitting on 492 square metres of freehold land. Alexandra Street is the town’s retail strip.
Westpac New Zealand Ltd has been at the Te Awamutu site since 1999 and is currently on a six-year lease running through until 2023, paying a gross rental of $104,000 plus GST per annum, with a rent review in 2020 which is linked to the Consumer Price Index.
Westpac is one of New Zealand’s ‘big four’ retail banks, which combined, hold 90 percent of loans and mortgages in New Zealand. The Westpac branch in Te Awamutu operates in all sectors of banking - including personal, business, agri’ business and institutional.
The freehold Te Awamutu property is being marketed for sale by auction at 11am on August 16 through Bayleys Waikato. Salesperson Josh Smith said the property had a seismic rating of 100 percent of new build standards and enjoyed a prominent position in the town centre – sustained by ample customer parking spaces immediately outside on both Alexandra and Market streets,
Mr Smith said the internal layout of the building comprised a large open-plan area with office cubicles, meeting rooms and staff facilities. The building also had rear access for staff.
The Westpac Te Awamutu branch is among the latest banking outlet to come up for sale through Bayleys, with the agency developing a proven track record of selling the property class.
Over the past two months alone the agency has sold:
• The ANZ Bank’s branch on the corner of Karangahape Rd and Upper Queen St in central Auckland for $4.005 million, after receiving a phenomenal 377 bids over a 40 minute auction. The sale figure delivered a yield of 4.1 percent.
• The Kaikohe branch of the ASB for $437,000 after receiving 16 bids. With an annual rental income of $33,000, the property’s sale figure delivered a yield of 7.5 percent. The 230 square metre ASB building sitting on 459 square metres of freehold land has been the bank’s presence in Kaikohe for 26-years. and
• The Levin branch of the BNZ in the South Manawatu for $1.634 million. The BNZ is currently on a three-year lease expiring in 2021 generating a net rental of $63,932 plus GST per annum.
“Banks are viewed as preferred tenants by many commercial property investors,” said Mr Smith, “because of their strong corporate status, and the fact that they occupy prominent ‘high street’ locations to service high foot traffic volumes.
“Banking premises, as is evident with Westpac in Te Awamutu, are maintained at high levels in keeping with their professional status. The current owner of 98 - 106 Alexandra Street has very much taken a ‘hands-on’ interest in ensuring the building is an easy-care investment by always overseeing any facilities management issues as and when they arose.”
Nearby commercial tenancies include the Te Awamutu branches of livestock and farm services firm PGG Wrightson, retailer Noel Leeming, Waipa District Council’s offices, and the Regent Theatre.