A trio of New Zealand Post properties in Canterbury have been placed on the market for sale.
Two of the offerings have commercial tenancies in place which also provide New Zealand Post and Kiwibank services, while the Ashburton property is being sold with a lease back to NZ Post and Kiwibank.
The properties are located in the Christchurch suburbs of Bishopdale, Woolston, and on the main street of the Canterbury township of Ashburton.
The NZ Post Shop outlet at 31 Bishopdale Court in Bishopdale features a 309m² building sitting on 278m² of freehold land. The premises are leased to retailer, Paper Tree, on a six-year tenancy running through until 2022 and generating a net rental of $62,000 per annum.
Paper Tree has five stores in Christchurch and are a highly regarded national retailer of discount art supplies, books and giftware. Paper Tree also operates NZ Posts’ mail and courier services in the area – including 534 post office boxes – along with a limited range of Kiwibank services.
The building is located within Bishopdale Mall and has undergone significant refurbishment work in 2016. It has a B-grade rating under the New Build Standards classification.
The NZ Post branch at 713 Ferry Road in Woolston – which operates within the Discount Dairy premises - provides NZ Post mail and courier services. Ferry Road is one of Christchurch’s main arterial routes in and out of the city.
The standalone 320m² property is located on a high profile 566m² corner site adjacent to the recently opened New World supermarket.
Discount Dairy which has a lease running through until June next year generating a net rental of $37,597 per annum, with an option for a new six-year lease. Apart from providing NZ Post mail and courier services the contract also includes the management of 590 post office boxes.
Liquid Laundromat, a self-service laundromat, occupies the remainder of the premises and is currently on a six-year lease expiring in 2022 and generating a net rental of $23,802 per annum. Currently with 36 locations operating in the North Island they are rapidly expanding their South Island network with 12 locations so far. The building has a B-grade rating under the New Build Standards classification.
Rounding out the portfolio, the imposing Ashburton Post Shop and Kiwibank branch at 390 – 422 East Street on the edge of the town’s main commercial hub, is a 1,329m² building sitting on some 994 square metres of freehold land.
NZ Post is offering a three-year lease from the settlement date of any purchase - with advertising and marketing design firm JFM Creative, and Robin Arnst Art School both leasing part of the upper level of the Ashburton premises on a month-to-month tenancy. The property is currently generating a total net rental of $53,457 per annum but there is potential to lift this rent significantly with the leasing of the some 396m² vacant area. The building has a C-grade rating under the New Build Standards classification.
All three properties are being marketed for sale by auction on Friday September 8 through Bayleys Canterbury. Salesperson Blair Young said: “All three properties are excellent investment opportunities – offering a mix for passive investors, add value investors, owner occupiers and potential for development.”