Masterton property has long-term bank tenant

Westpac has occupied the building at 237 Queen St, Masterton, since it was built. Photo / Supplied

A prime investment site in the heart of Masterton's retail precinct has come to the market for the first time it was built in 2008.

The 467sq m building at 237 Queen St is for sale by tender, closing 2pm, June 6, and is being marketed by joint sole agents Mike Laven of Colliers International and David McHattie of LJ Hooker.

Tenanted by Westpac (NZ) Investments Ltd, the freehold fee simple flat site covers 503sq m, together with a half share of a rear lot for car parking.

Westpac has occupied the high-profile site since it was built and has three rights of renewal of six years each, the first expiring in 2023 with final expiry in 2035.

The annual rental is $110,392 plus GST with rent reviews every three years, with the next review due on December 1, 2020," Laven says.

"Masterton is now a thriving regional centre and the local investment market is buoyant," Laven says.

"There have been several recent sales of commercial buildings including units occupied by Burger King in early 2019 and more recently, Pita Pit and Dominos. The latter sold for just over $1 million – a yield of under 6 per cent.

"We also ran a very successful campaign for the sale of a national portfolio of service stations and the Z Energy property in Masterton attracted very strong interest.

"The core of Masterton CBD has moved in recent years and the Westpac building is now considered to be in the prime retail area.

"This has been highlighted by the $10 million upgrade of the adjacent Countdown Supermarket. The remodelled store and additional car parking are generating more vehicle and pedestrian traffic in the area."

Laven says Wairarapa's economy is experiencing strong growth. "Population is forecast to grow by over 20 per cent in the next 24 years. Construction is buoyant - particularly so in the past two years. There were 310 residential buildings approved to be built in the 2017-2018 financial years, up 197 on the previous two years.

He says Wairarapa's economy is driven by farming, dairy, forestry, fishing, horticulture and viticulture. "The region also offers excellent state and private primary and secondary education as well as an extensive range of outdoor activities such cycling, tramping, fishing and hunting."