A healthy lease term with reliable tenant, The Horse and Jockey Inn, is a strong selling point of a commercial property for sale in central Matamata in Hobbiton country.
The property at 81-89 Arawa St in the Matamata town centre is over the road from a Countdown supermarket, and walking distance to the bus stop taking visitors to the Hobbiton movie site, a key tourist attraction.
The investment property of approximately 1237 square metres is also underpinned by smaller supporting tenants in a town buzzing with tourists and locals thanks to the nearby Hobbiton attraction.
The commercial property is being marketed by Bayleys specialists Mike Swanson and Alex ten Hove for auction at 12pm Thursday December 5, 2019 at Bayleys offices at 96 Ulster St, Hamilton. The property features in Bayleys' latest Total Property portfolio magazine.
The large building has a prominent street front frontage and has been refurbished with an attractive schist exterior and large shop front windows.
There are 16 rooms of comfortable accommodation that have proved popular with visitors, as well as a tenant's apartment, a commercial kitchen, a garden bar and a newly fitted out separate gaming lounge.
Anchor tenant, Horse and Jockey Inn, runs a successful and popular restaurant and bar along with additional income from the accommodation and gaming.
Horse and Jockey Inn's lease, returning $144,000 a year, runs for six years initially with two six-year rights of renewal to August 2036. The other three tenants lift the total rental return a year to $175,110.
Horse and Jockey Inn occupies the middle tenancy which includes a large bar and dining area along with the commercial kitchen and chillers.
On the ground floor a recently refurbished gaming lounge which is separate from the bar. The second level of the property comprises 16 rooms of affordable accommodation.
Located towards Matamata's main street, Broadway, are two self-contained shops tenanted by Hair 4 U and Kauri Holistic Health and Hair respectively.
The eastern corner of the property is tenanted by the I Luv Asian Store, while the rear of the building allows for plenty of parking as well as trades and goods access.
"With yields under pressure in the main centres, this property offers an opportunity for excellent returns underpinned by strong tenant covenants, and a substantial up-to-date building in the thriving town of Matamata," Bayleys' Mike Swanson said.
Originally built in the 1950's and renovated in the mid 2000's the building spans an impressive length of Arawa Street in Matamata with an appealing modern street frontage featuring Otago schist cladding and aluminium joinery.
Bayleys agent Alex ten Hove said the Matamata is in the centre of the "golden triangle" of Auckland, Hamilton and Tauranga.
It is well connected to other centres through a network of road, rail and air links. Nearly half of New Zealand's population live within 100 kilometres of the Matamata-Piako district making it an ideal base for business. Four major State Highways pass through Matamata-Piako.
The property is next to Countdown and within easy walking distance of the bustling main street and the popular I-site tourism hotspot visited by 50,000 people a year.
Driven by the stunning success of Hobbiton, the area boasts more than 600,000 tourists per year, bringing in about $80 million to the area annually, and employing 300 locals.
It has boosted many spin off businesses and accommodation outlets, including the Horse and Jockey Inn.
Hobbiton is the movie village housing the likes of hobbit characters Frodo and Bilbo Baggins that was built into a hillside in 1998 by Lord of the Rings movie maker Sir Peter Jackson.
In 1998 he identified the Alexander sheep farm as the perfect location because it resembled the Shire in the Lord of the Rings book by JRR Tolkein. Importantly, to enhance the fantasy world movie, there were no power lines, roads or buildings visible.
With help from the New Zealand army, Jackson and his team created the Bag End village with 44 hobbit holes built into the earth. Guests can book a choice of several tours and banquet feasts fit for a hobbit. The village is also a function centre for themed events and weddings.