The property housing the seven-cinema Rialto complex in Newmarket is being marketed for sale as an investment opportunity with the tenant having recently renewed the lease for a further five years.
Located within the Rialto shopping centre at 153-185 Broadway in the heart of Newmarket's busy strip retail precinct, the 1983sq m property is producing net annual rental income of $410,140.
The Rialto is billed as Auckland's largest 'arthouse' film cinema complex - screening movies which are
frequently 'artistic' and typically produced outside major film studios.
Featured in Bayleys' latest Total Property portfolio, the Rialto's premises is being marketed by Alan Haydock and Damien Bullick of Bayleys Auckland's City & Fringe division, who are offering the property for sale by tender closing Tuesday, August 9, unless it sells earlier by negotiation.
"This is a great opportunity to secure a superbly positioned investment property, with an established tenant, the Rialto Cinema, which has occupied the site for over 10 years," says Haydock.
"The Rialto has reinforced its commitment to the location by exercising the first of two five-year rights of renewal in December 2015."
Rialto Cinema's lease has built in annual rental growth based on the increase in the Consumer Price Index, with the next increase due in December. The rent will be reviewed to market in 2020 if the next right of renewal is exercised.
The Newmarket cinema business is owned by Rialto Cinemas, a joint venture between Event Cinemas New Zealand and Rialto Entertainment, both well-known global companies, says Haydock. Rialto Cinemas has another complex in Dunedin and screens over 80 films per year from major film distributors including Roadshow, Paramount, Sony Pictures, 20th Century Fox and Hoyts Film Distribution as well as from smaller, independent distributors.
"While its cinemas have access to films from all the main distributors, they offer a wider range of screenings than the mainstream cinema chains as well many film festivals, making them popular with film buffs," Haydock says.
"The Rialto Newmarket also has a large lounge bar, with an outside balcony area, offering a personalised food and beverage service in a relaxed environment. It is located on the Rialto Centre's upper level which it shares with a well-established food court that provides a range of multicultural dining options for cinema patrons as well as shoppers and employees of Newmarket's many businesses."
The Rialto Cinema can be accessed from both Broadway which is Newmarket's main street, and Osborne Street, a cosmopolitan retail strip offering a pedestrian lane shopping experience at the rear of the Rialto Centre.The centre has 25 fashion, homeware and lifestyle stores on the ground floor, with the cinema complex and the food court being accessed via escalators.
Bullick says the 4048sq m Rialto Centre is well positioned close to the intersection of two major central arterials, Broadway and Khyber Pass, on the sought-after western side of Broadway, and also benefits from being close to a number of car parking buildings. It is in one of the highest pedestrian count areas on Broadway which attracts the highest volume of street pedestrians outside of the CBD in Auckland.
The centre includes and is surrounded by a number international and national retailers, including main high profile fashion brands, as well as a mix of popular cafes, restaurants, bars and art galleries.
"The success of Newmarket as a high end retail, recreation and entertainment zone is helped by the large working population in the immediate area, totalling about 20,000, and the affluence of Newmarket's surrounding suburbs which include Epsom, Remuera, Parnell and the Eastern Bays," Bullick says. "It also has good access to motorway connections and is also very efficiently serviced by public transport which brings large volume of pedestrians to the area daily via bus and train."