Magazine Clothing is a tenant in the Tirau retail block for sale. Photo / Supplied
A block of retail units overlooking one of the country's busiest state highways is for sale in a Waikato town renowned for its arts and crafts boutiques.
The six-unit site at 15-17 Main Road, Tirau, sits on State Highway 1 where a 50km/h speed limit through the town centre effectively acting as a 'brake' encouraging motorists to stop at the numerous cafes, craft and antique shops.
New Zealand Transport Agency data has recorded that almost 12,000 vehicles travel through Tirau on an average week day.
The freehold land and buildings at 15- 17 Main Rd are being marketed for sale at auction on April 13 by Bayleys Hamilton salespeople, Alex ten Hove and Mike Swanson. The property features in Bayleys' latest Total Property magazine just out.
Ten Hove says the 505sq m block of shops is within the Tirau town centre zone, sitting on 1058sq m of land. The property also includes an 80sq m two-bedroom flat linked to the takeaway business.
He says activities permitted under this classification include retailing, food and beverage operations, offices, education businesses, and healthcare facilities.
Ten Hove says the six premises in the block range from 50-225sq m, and with the flat, generate a combined annual rental income of $60,745 plus GST. The property also has parking for six vehicles at the rear.
The six tenancies encompass:
• Youngs Takeaways - occupying a 90sq m area on a three-year lease expiring in 2019 a generating $13,000 per annum with four further three-year rights of renewal.
• Yoga Body and Mind studio - also within a 90sq m unit, on a three-year lease expiring in 2018 and earning $12,000 per annum, with two further two-year rights of renewal.
• Art on Main art studio - leasing a 225sq m area on a month-to-month lease for $10,725 per annum.
• Magazine Clothing - within a 50sq m site on a three-year lease expiring in 2018 and paying $9,000 per annum, with one further three-year right of renewal.
• Magazine Clothing Outlet shop - renting a 50sq m site on a three-year lease expiring in 2018 and earning $9000 per annum, with one further three-year right of renewal.
• The two-bedroom flat tenanted by the operators of the Youngs Takeaways on a monthly lease and bringing in an annual rental of $7020 excluding GST.
Ten Hove says the sixth retail unit within the block is a vacant 65sq m premises with signage opportunities on the overhanging gantry above the Main Rd pavement. It has an assessed rental potential of $10,400 per annum.
South Waikato District Council's Operative Plan for Tirau identifies the town's main street as a location for high quality boutique retail properties catering to both passing travellers and the local population - sustaining a "country village character rather than a slice of big city".
"The town centre zone intends to retain the existing attributes of Tirau to ensure it remains a pleasant place for people to stop and wander from shop to shop," says the council plan.
"These attributes are based on a streetscape consisting of mainly small single-storey shops (rather than nationwide corporate chains), and a range of boutique retail stores presenting an attractive form to the street - with space and scope for entertainment and street activities along the paved and grassed frontages of the main thoroughfare.
"The quality of retail premises are important parts of the success of Tirau as a boutique retail centre.
"The main street of Tirau is also State Highway 1 and performs a key role in the transportation network of the district and wider region," the council report concludes.
Swanson says the classic 'Kiwiana' frontage of the six units for sale replicates a heritage New Zealand feel - in keeping with the council's vision for the heart of Tirau as a retail and hospitality destination.
"As traffic flows between the 'silver triangle' of Hamilton, Tauranga and Rotorua continue to grow, so too will the number of vehicles passing through Tirau," he says.
"Even with one of the highest daily traffic counts of any town in New Zealand, Tirau still has bountiful parking - both on the main street and in the multitude of adjacent car parks operated by the town's retailers.
"This ease of parking availability, and no parking wardens, encourages people to stop in town and sustains its retail hub."