Harbourside building goes on the market

What is understood to be one of the last assets of former NBR rich-lister Shane Armstrong, the waterfront building housing Tauranga's iconic Harbourside Restaurant, is on the market for mortgagee sale by private treaty, closing early next month.

The property at 150 The Strand, pictured above, is a Tauranga landmark built more than 70 years ago and was originally the yacht club premises. It was substantially renovated in 1990 into its present form as a ground floor restaurant and first floor offices.

The property title is complex, including both freehold title to the land as well as an adjoining long-term rent free sea bed permit for the part of the building constructed over the water.

"This is a rare opportunity to purchase a well-known property in a unique CBD location, with a long-established tenant in place on excellent lease terms," said Simon Clark, chief executive of Colliers' Tauranga office, which is handling the sale.

Graham McGarry of Rhodes and Co, lawyers in Christchurch, who is representing the mortgagee, Property Finance Funding Nominees Ltd, confirmed that the defaulted mortgage had been taken out by Mr Armstrong.

Mr McGarry said he was dealing only with the Harbourside property and had no knowledge of any other assets that might be still held by Mr Armstrong.

However, a well-placed source said the Harbourside property was believed to be the last remaining Tauranga asset of Mr Armstrong, who was listed as bankrupt under his full name of Lincoln Shane Douglas Armstrong in 2012.

Mr Armstrong established the Grumpy Mole Saloon chain and owned a number of Tauranga bars, restaurants and commercial properties before his business was affected by the global financial crisis.

Peter and Anita Ward bought the Harbourside Restaurant off Mr Armstrong in 2011, after managing it for over four years.

"We have a long-term tenancy and we're looking forward to carrying on as usual, regardless of who acquires the building," said Mr Ward.

Harbourside Restaurant holds a 10-year lease to the property, which commenced in 2011, with the right to renew its lease for two further terms of 10 years each.

This gives a possible final expiry of September 2041. Two other tenants hold shorter-term leases to office spaces upstairs, contributing to the total gross annual rental income of $162,000. Adjoining car parks, owned by Tauranga City Council, are also offered for lease.