A central Gisborne Edwardian character building at 69 Peel St and occupied by one of the city's largest multi-purpose hospitality venues has been placed on the market for sale.
"The property is being sold freehold as a fully leased function and conference centre," says Colin McNab of Bayleys Gisborne who is marketing it for sale by negotiation. "It houses The Flying Dutchman Restaurant Cafe and Bar and presents an exciting investment opportunity in the heart of the city's central business district."
The distinctive and well-preserved character building has a floor area of 850sq m built on an 832sq m site. Dating back to the early 1900s, the two-storeyed building has retained many historic features, including polished floors, exposed brick walls and superior plaster ceilings.
The lease to The Flying Dutchman encompasses both floors of the building and includes an outdoor function area to the rear.
The existing lease, which runs through until November 30, 2015, has two additional six-year rights of renewal, taking it through until November 2027. The current annual rent is $65,000, plus GST and operational expenses.
McNab says The Flying Dutchman offers versatile function and meeting room facilities that can be adapted to meet the needs of wedding receptions, conferences, corporate lunches, board meetings, birthdays and private dinners.
Upstairs, it can accommodate 200 guests for a seated dinner, 100 in the main bar downstairs and up to 50 in the Fluid Bar. The other three rooms are self-contained with their own bar and amenities.
"The building has a rateable value of $615,000 with the rating valuation from 2011 made up of a land valuation of $290,000 and improvements totalling $325,000," McNab says.
"The property offers investors in excess of a 10 per cent net return on rateable value while the position and versatility of the building also add to the value," he says.
"Located in the CBD, it is only a few minutes' walk to central hotels and other attractions in the city, which is bordered by the Taruheru River and the Pacific Ocean, making it an ideal setting for any event."
He says visitors are attracted to the seaside city by features like its beautiful beaches, bush walks, fly-fishing rivers and wineries.
The building has a well-appointed kitchen area, a separate dining room, two downstairs bars, an outside bar at the rear, a large bar, dining kiosks and a substantial function and entertainment area on the first floor.
All bar areas have direct access to toilet facilities and the whole building is fully security monitored.
McNab says one of the ground floor bars has undergone extensive renovations and is well suited for smaller, more intimate functions.
"The existing tenant offers the premises for pre-booked functions, which has proved to be successful with a variety of bars and function rooms allowing catering for groups ranging from small to large.
"Previously the building has operated as a bar and grill facility.
"The Flying Dutchman's chefs create a variety of catering styles to complement any occasion, including canapes, plated meals, fine dining menus, buffet dinners and substantial finger food," McNab says.
"Gisborne's picturesque views and sheltered, warm climate ... make this venue an increasingly popular location for weddings in particular."
What's on offer
For sale: Edwardian building at 69 Peel St, Gisborne.
Agent: Colin NcNab, Bayleys Gisborne.
Leased to: The Flying Dutchman Restaurant Cafe and Bar.
Method of sale: By negotiation
Features: Home to one of city's largest hospitality venues
Long lease through to November 2015
Ideal Gisborne CBD location