A block of large retail shops in Napier has sold to an investor for $8.3 million.
The Wellesley Rd shops were sold by three-year-old Auckland-based GBU Realty Ltd.
Bay of Plenty-based Balmoral Centre Ltd purchased the property off an Auckland vendor.
GBU director Grant Unsworth said the sale reflected the demand for properties which are well located and have strong national tenants. Tenants located at the site include Number One Shoes, Dick Smith, Pet Essentials, Bond and Bond, Lighting Plus and NZ Post.
The property has one 400sqm tenancy available.
Mr Unsworth said with recent changes in the Building Act, properties of modern construction which comply with the Building Act 2004 provide confidence to retailers who are looking for long term security.
"This is likely to create a two-tiered market for properties which comply and others that do not," he said.
The property is situated on the south west corner of Napier's CBD, located on the eastern side of Wellesley Road at the intersection with Kennedy Road and has six large-format tenancies ranging from 382sqm through to 950sqm with 136 car parks on site. The total area is 8,976 sqm.
Balmoral Centre director and property manager, Sam Wulff, said the property's unique location on the fringe of the Napier CBD, and immediately adjacent to three supermarkets, made it a very attractive property.
The family-owned firm is working toward improvements to the property identified by the tenants - to the benefit of the public and the tenants, Mr Wulff said.
GBU Realty Ltd is a specialist retail agency that has leased sites in Napier's Emerson St, including Cotton On, Pagani, Specsavers, Hartleys and Black Pepper.
Mr Unsworth said GBU operated differently from other real estate agencies.
"We spend all day talking to retailers."
He said it felt "very good to get between Bayleys and Colliers", the two companies that dominate the Hawke's Bay commercial real estate market.
"I'm sure we will do it again."