'Cheque' this out in Te Awamutu

The Westpac branch at the intersection of Alexandra and Market Streets. Photo / Supplied

Bayleys Waikato is selling the Te Awamutu property the town's Westpac bank has occupied since 1999.

The bank property at 98-106 Alexandra St is in the centre of the town's business district, comprising a 505sq m building on 492sq m of freehold site.

The freehold property is to be auctioned at 11am on August 16 through Bayleys Waikato and it features in Bayleys' latest Total Property portfolio magazine.

A Bayleys Hamilton salesperson, Josh Smith, says Westpac NZ Ltd has a six-year-lease running through until 2023.

"There's the benefit of having a stable tenant in place, one paying a gross rental of $104,000 net per annum, with a rent review in 2020, linked to the Consumer Price Index."

Smith points out Westpac is one of New Zealand's "big four retail banks" - the group holding hold 90 per cent of loans and mortgages in New Zealand.

The Westpac branch in Te Awamutu operates in all sectors of banking — including personal, business, agri' business and institutional.

"This property holds a prominent position in the town centre, sustained by ample customer parking spaces immediately outside on both Alexandra and Market Streets. Its seismic rating is 100 per cent of new building standard."

Smith says the internal layout comprises a large open-plan area with office cubicles, meeting rooms and staff facilities. The building also has rear access for staff.

He says the Westpac Te Awamutu is one of several bank outlets recently listed with Bayleys, the agency having demonstrated a proven track record of selling this property class.

Over the past two months alone the agency has sold:

• The ANZ Bank's branch on the corner of Karangahape Rd and Upper Queen St in central Auckland for $4,005,000 after receiving a phenomenal 377 bids over a 40 minute auction. The sale figure delivered a yield of 4.1 per cent.
• The Kaikohe branch of the ASB for $437,000 after receiving 16 bids. With an annual rental income of $33,000, the property's sale figure delivered a yield of 7.5 per cent. The 230sq m ASB building sitting on 459sq m of freehold land has been the bank's presence in Kaikohe for 26-years.
• The Levin branch of the BNZ in the South Manawatu for $1,634,000. The BNZ is on a three-year lease expiring in 2021 generating a net rental of $63,932 net per annum.

"Banks are viewed as preferred tenants by many commercial property investors, because of their strong corporate status, and the fact that they occupy prominent 'high street' locations to service high foot traffic volumes," says Smith.

"Banking premises, as is evident with Westpac in Te Awamutu, are maintained at high levels in keeping with their professional status.

"The owner of 98-106 Alexandra St has taken a 'hands-on' interest in ensuring the building is an easy-care investment, having overseen facilities management issues as and when they arise."

Nearby commercial tenancies include the Te Awamutu branches of PGG Wrightson, Noel Leeming, Waipa District Council's offices, and the Regent Theatre.