The iconic Guinness Appliances retail store in downtown Tauranga is being transformed into a fully functioning fitness and childcare centre.
Lindsay and Lisa Chan, owner/operators of The Gym Tauranga, have bought the First Ave store which closed at the end of May when the Guinness business stopped trading after 104 years.
They are beginning extensive renovations and will be moving their existing operation from the corner of Cameron Rd and Seventh Ave at the end of April.
The Chans will be installing their gym equipment on the shop floor, changing facilities and two group fitness and RPM stationary bike studios in the two adjoining storage buildings and an early childcare centre upstairs in the office space.
They will also build a rooftop deck for a play area at the back to cater for up to 60 children all day.
"We will have bigger premises and this allows us to integrate two businesses at one site," said Mrs Chan, who bought The Gym with her husband eight years ago, after it had been operating 17 years.
"We want to grow our membership and bring more foot traffic to the area, having easy access to the central business district," she said. "We've done our research and we are making the move confidently," she added.
The First Ave site has 1700sq m, with 24 offstreet carparks, compared with 1000sq m at Seventh Ave.
Operating underneath Warehouse Stationery, The Gym is one of the biggest and oldest in the Bay, with 1700 members and employing 27 staff. The Chans will employ an additional 11 teachers for the bigger childcare centre in First Ave.
The Gym members, who have swipe cards, will have 24-hour access and the facility will be manned from 6am to 8pm weekdays and half days during the weekend.
The Chans initially intended to lease the Guinness Appliances site but after the negotiations got bogged down by fit-out costs they decided to buy it from owner Hughes and Cossar Group Holdings and become their own landlord.
Wayne Hughes, director of Hughes and Cossar, said the deal was completed this week for $2.2 million, just under the present valuation.
Hughes and Cossar, which closed the century-old Guinness business, has leased its other stores in Waihi to Betta Electrical, in Te Puke to $2 Shop, in Glasgow St Tauranga to Action Equipment, and in Owens Place Mount Maunganui to Animal Antics.
The First Ave store has a colourful background, going from a petrol station, to Mazda car dealership with a mechanic out the back, to an appliances store and now a gym. Hughes and Cossar bought it in 1984. It still owns a block of land downtown on The Strand and has drive-through access between Harington and McLean streets through the Mill Liquor Store. It also owns Strand Motels, Strand House, and the cafe and offices on the corner.
"It's a prime re-development site," said Mr Hughes. "We would look at that in a joint venture with a developer but it could be 10 years out."
He said any development could go three levels, with retail first, offices second and residential on the top floor, as well as underground parking.