Mortgagee sale represents investment opportunity

By Colin Taylor

Two floors of Blenheim's Radio House will be auctioned on September 18.
Two floors of Blenheim's Radio House will be auctioned on September 18.

Two levels of a prominent three-level retail and office building anchored by a bank tenant in a high-profile position in Blenheim's central business and shopping precinct are being marketed as a mortgagee sale.

Situated at 1 Main St, Blenheim, on the corner with Market St, Radio House is exposed to high traffic and pedestrian levels and is 300m from the intersection with SH1.

Bayleys Marlborough salesperson Grant Baxter is marketing two freehold unit titles on the ground and first floors with a combined leasable area of 840sq m for sale by auction on September 18.

Both floors are fully leased generating annual net rent of $183,200 plus GST from seven tenants and two billboards.

"Notable neighbours include Hallensteins, Glassons, the high-rise post office tower and the police station," Baxter says.

"A recently developed Briscoes and co-site Rebel Sports store just east of the building have also contributed to an increase in Main St foot traffic."

He says a variety of leases deliver a broad risk profile for any potential new owner looking for investment returns.

Radio House's tenants include Southland Building Society, Custom Copy, Ice 2 Eskimos, which leases two areas, Billboard Copy, human resources company Intepeople, a law office and the Marine Farming Association. Two SBS bank billboards also provide income.

Anchor tenant SBS Bank began a 10-year lease in July last year, with two five-year rights of renewal, and a final expiry date of May 2032. The bank pays net annual rent of $105,000, plus operating expenses. Of the other tenants, three of their final expiry dates are in 2014, one in 2020 and two in 2032.

The modernised building is zoned Commercial and comprises three levels of office space and retail. Built in 1977, it has concrete foundations, concrete column and beam frame, tilt slab concrete and block walls and aluminium joinery.

A code compliance certificate was issued last November for strengthening work and renewal of a warrant of fitness that expired on July 1 is being sought.

SBS Bank is on the ground floor of 454sq m along with two retail tenancies. The first floor, of 386sq m is occupied by two major and two minor tenancies. The land and building has a capital valuation of $1.94 million.

Marlborough has a warm climate and regularly records the highest sunshine hours in New Zealand, says Baxter, and it is the country's largest wine-making region.

- NZ Herald

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