Pukaki Centre put on market

SALE: Rotorua Energy Charitable Trust is selling the last piece of its property portfolio. PHOTO/SUPPLIED

The Rotorua Energy Charitable Trust has placed the last piece of its property portfolio on the market - selling off the five-story Pukaki Centre.

The decision to sell the Pukaki St building came due to a change in the way the trust's assets were managed, according to chairman Grahame Hall.

Mr Hall said while the trust once owned several buildings around the country, it had now decided to put its final property on the market after entering a formal investment management agreement with Mercer NZ.

The trust was established in 1994 using some of the funds resulting from the corporatisation of the Rotorua Electricity Company and it is now reassessing its property portfolio as part of its wider strategic investment and charitable goals.

It has grown its original capital of $32 million to approximately $150 million today, with more than $93 million having been invested back into the local community by way of grants.

The Pukaki Centre is underpinned by primarily government tenants and is for sale through Bayleys. It will be sold by tender closing August 12.

Agent Mark Rendell from Bayleys Rotorua said the property had the sort of credentials which motivated investors, including private individuals and family trusts were looking for in today's market.

"In terms of Rotorua city, the property is really well-located.

"It's surrounded by professional business tenants and is near to the council building and the district court. It's also close to the Lakefront and handy to popular Eat Streat."

The property has a rateable value of just over $4.9 million and currently returns a net income of $435,691 per annum, plus GST.

Last week the trust announced two new funding rounds to support community organisations in the region.

Groups looking to complete larger capital projects or undertake larger initiatives which benefit the community can now apply for a grant up to the value of $100,000 through two funding rounds each year. The previous cap was $25,000.