The former CPO building in Thames is up for sale with NZ Post still its anchor tenant.
The two-level 1410sqm building was originally built as the town’s Central Post Office in 1937 and is located on a 1521sq m site at 517 Pollen St in the commercial heart of the Coromandel Peninsula’s largest town.
The property is among a wide range of commercial and industrial properties which will go under the hammer in Bayleys Real Estate’s next Total Property auction in Auckland on October 24, unless sold prior. It is being marketed by Millie Liang of Bayleys’ Auckland based international division in conjunction with Geoff Graham of Bayleys’ Thames office.
“As with most of these distinctive Government-built central post office buildings, this one is located in a main road position on Thames’ central retail strip,” says Millie Liang. “It’s a well presented and maintained character building comprising ground floor retail and offices above.”
NZ Post and its subsidiary Kiwibank occupy the ground floor of the building on six-year leases from December 2016 with two three-year rights of renewal. They currently generate gross annual rental income of $100,000, with three-yearly market rent reviews with one in December next year.
There are a variety of office suites on the intensively partitioned upper level ranging from 25sq m to 80sq m. These are leased on terms of up to two years mainly to professional service providers some of whom have been in occupation since 2013.
“The short term nature of these leases combined with some vacant space on this floor provides an opportunity to increase the rental or possibly convert to some other use such as short term tourist or residential accommodation.”
To the rear of the site is a carport with 16 parking spaces which forms part of the NZ Post tenancy and two storage buildings.
The property is currently producing total gross annual rental income of $122,757 with operating expenses of $19,162, meaning the annual net rental income is approximately $103,595.
“This is a high profile freehold, standalone property in a prime position anchored by government tenant which has been in occupation for over 80 years,” says Liang. “The upper floor of the building provides add value potential through rental uplifts or potentially converting it to other uses.”
Surrounding buildings comprise a mix of low level commercial premises providing retail accommodation on the ground floor and some office accommodation above.
Geoff Graham says the property is well positioned to benefit from the planned pedestrian link to Goldfields Mall, a large retail complex located on the western fringe of the town centre.
“Thames is the main commercial and service centre for the Thames Coromandel region which has a total population of close to 30,000 people and a broad based economy which includes the Toyota Signature Class car complex in Thames, farming, fishing and tourism.”