Move in quick on big Waikato offering

The apartment complex in Peachgrove Rd. Photo / Supplied

Three adjoining multi-tenanted accommodation complexes and an office building in central Hamilton are up for sale in a receivership tender, offering several future options for new owners.

Encompassing 120 accommodation units, the properties are located at 44, 46 and 48 Peachgrove Rd in Claudelands and are being offered for tender as individual parcels, a combination of parcels or as an entire block.

The buildings, known as The Centrum, The Boulevard Townhouses and The Peachgrove Studios and Offices, offer good quality short- to long-term accommodation on a fully furnished basis.

Bayleys' Cameron Melhuish, who is project managing the tender on behalf of the receiver McGrathNicol, says all three properties benefit from strong tenancy demand and are producing excellent cash flow.

"They also provide an opportunity to add value, either in the form of unit title subdivision, refurbishment or extra land for additional development, and to take advantage of Hamilton's growing demand for accommodation."

Tenders on individual or multiple titles close at 4pm on Thursday, September 23, with Bayleys' Auckland office, unless sold prior by private treaty.

This is the second stage of a receivership sale involving one of New Zealand's biggest ever selldowns of residential accommodation complexes. The first stage, also marketed by Bayleys and comprised a total of 149 rental units located in Hamilton, New Plymouth and Palmerston North attracted widespread interest and multiple tenders.

Two neighbouring complexes in Vine St, Hamilton, sold to separate investors attracted by their strong cash flow, while a complex of 16 three-bedroom townhouses in New Plymouth was also sold to a private investor. A Palmerston North complex containing 36 units was purchased by an owner operator who will live on site and manage the property.

Stephen Shale of Bayleys Waikato, who is also involved in marketing the Peachgrove Rd properties, says they are well located in a strategic position midway between the CBD and Waikato University in a predominantly residential area directly opposite Hamilton Boys' High School. Regular bus services operate to and from the CBD, while a railway station is within walking distance north of the properties.

The Centrum at 44 Peachgrove Rd was built in 2007 and has 24 apartments contained in two attached three-storey buildings tenanted mainly by private residential tenants, mainly professionals, with a small number of corporate tenants.

The apartments have an open-plan living and kitchenette area with a separate bedroom and bathroom and are about 37sq m, excluding outdoor balcony and terrace areas. The average weekly rent is $310.

There is an area of vacant land located on the 3735sq m site, which has been reserved for future development and has consent in place for a three-level building.

The Boulevard Townhouses at 46 Peachgrove Rd opened in January 2009 and consist of 46 two-bedroom townhouses of about 80sq m with 20 mid- to long-term corporate occupants with tenancies varying from 18 months to two years. The average length of stay by the balance of residential tenants is 12 months. Their demographic profile is similar to the Centrum. The average Boulevard weekly rent is $410.

The complex located on a 1.1684 ha site was built with the ability to separately unit title each of the 46 townhouses. The development flows around a loop road creating an inner cluster of townhouses around a central landscaped area with the balance located on the site's perimeter.

At 48 Peachgrove Rd, the Peachgrove Studios and Offices, comprise two separate buildings constructed in the 1980s and located on a 5945sq m site contain 54 studio units with 43 car parks.

There are 22 long-term commercial tenancies (12 to 24 months) with the other occupants including labourers, nurses, trades people, students and WINZ placements. The studios are producing average rent of $200, with the opportunity to lift this through a refurbishment programme. There is also a 550sq m office building leased to the Auckland Business School at an annual net rental of $92,500 plus GST.