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Richmond town centre site for sale with mixed-use redevelopment potential

Tags: Commercial

A row of CBD retail sites have been tipped as the possible location for a mixed-used development that could bring apartment living to the heart of Richmond.

A row of CBD retail sites have been tipped as the possible location for a mixed-used development that could bring apartment living to the heart of Richmond.

The three single-storey buildings for sale at 238-244 Queen Street are positioned between Richmond Mall and Sundial Square in the heart of Richmond’s town centre retail precinct.

Hailed for the wide-ranging options they present to potential buyers, the sites combine significant existing rental income with a myriad of redevelopment possibilities.

The three buildings with high-visibility frontage to Queen Street currently house a restaurant and a takeaway, along with a hair salon, a jeweller and a beauty consultant. The five tenancies generate total net rental income of $112,385 plus GST per annum.

The properties are attracting keen interest from investors seeking to maximise the existing rental potential or to add value by reconfiguring the site. Attention is also likely from buyers seeking to completely redevelop the site with new retail, residential and possibly boutique office accommodation.

The freehold land and buildings at 238, 240 and 242-244 Queen Street, Richmond, are now being marketed for collective sale by auction on 24 November (unless sold prior) through Bayleys Nelson.

Salespeople Paul Vining and Gill Ireland said the buildings, with a combined floor area of approximately 516 square metres, sat on 1,534 square metres of land across three separate titles. The sites include 30 off-street car parks at the rear.

“Constructed between 1960 and 1998, these buildings are configured to provide six individual tenancies. Together they offer some 34 metres of high-profile frontage to the busiest section of Queen Street, plus rear access for car parking and deliveries via a laneway from Sundial Square,” Vining said.

The 119-square metre (approximate) building at 238 Queen Street, leased to RoCS craft jeweller and a nail and beauty studio, generates total rental income of $37,200 plus GST. Both leases run through to 2023, with rights of renewal extending out to 2026.

A 233-square metre (approximate) structure at 240 Queen Street is partially leased to Richmond Takeaways, which pays $23,200 plus GST on a lease running through to 2023.

At 242-244 Queen Street, a 164-square metre (approximate) building houses Indian/Malaysian restaurant Mango and Clear Cuts Hair Design, generating combined rental income of $57,500 plus GST per annum.

Vining said a new owner could optimise the existing rental potential by leasing one vacant retail tenancy and 18 car parks that had not been formally leased. A market appraisal showed this could add more than $62,000 of rental income.

“Alternatively, low site coverage and excellent access from the rear offers buyers flexibility to reconfigure or completely redevelop the site. Existing tenancies would offer developers a useful holding income while they investigated options to unlock the site’s full potential,” Vining said.

Developers could seek to maximise income through the creation of new retail, residential and possibly boutique commercial office premises, he said.

The site’s Central Business zoning under Tasman District Council’s resource management plan allows for commercial activity along Richmond’s main streets and residential accommodation above ground floor.

Ireland said developers would seek to establish new retail offerings which were complementary to the 70-plus stores next-door at Richmond Mall – including possibilities such as dentists, gym or sports-medicine facilities, dry cleaners or a cinema.

Developers were also actively investigating opportunities to bring apartment living to Richmond,” Ireland said.

“The town’s availability of flat land close to Nelson is driving an influx of residents and businesses to Richmond. This has seen the local population swell by nearly a quarter since 2006, to more than 15,000 at the 2018 census.

“This population boom has led to a shortage of rental properties. Surrounding areas in Nelson, Tahuna and Stoke have seen significant apartment and townhouse developments in recent years, and it’s only a matter of time before we see apartments in Richmond.”

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