Art Deco ex-Post Office in Napier sells for $8m

Napier's former Central Post Office on the corner of Dickens and Hastings Sts. Photo / File

An 89-year-old building which survived the 1931 Napier earthquake, has a new lease on life, after it was sold to new owners for a cool $8 million.

After it was listed for sale by Bayleys Napier, Napier's former Central Post Office on the corner of Dickens and Hastings Sts was sold to an un-named new owner.

The 1929-built building was put for sale by former owner Paraparaumu-based company Waste of Space Aviation had a Napier City Council rateable value of $6.6m in September 2017.

Although it survived the destructive 1931 earthquake, the heritage-listed Art Deco building was deemed earthquake-prone in 2011. Its then anchor tenants, NZ Post and Kiwibank, moved out to allow for the strengthening upgrade work to be undertaken.

Following an extensive three-year strengthening, refurbishing and remodelling programme completed early in 2014, the building has been steadily re-tenanted over the ensuing years.

Now the three-storey premises are occupied by 12 different businesses.

Combined, the 12 tenancies within the building generate an annual rental revenue of $558,362 plus GST.

Bayleys salesman Sam MacDonald said businesses within the building were on a range of varied lease terms stretching as far as six years, and with multiple rights of renewal terms.

Mr McDonald said with a rental income of $558,362/year net + GST the sale price of $8m represented a 6.9 per cent yield.

The 1554sq m city centre site was now fully occupied by 12 tenants with Napier City Council occupying the top level, three other office tenants below and retail tenants on ground floor, including NZ Post/Kiwibank and Vodafone.

A Napier City Council spokeswoman confirmed the council retained a three-year lease (with optional plus one plus one) for the current space.

"Our Collaboration Hub (a shared staff space) is located within the Post Office Building along with members of our Corporate Services team."