Prime real estate on market

KEY SPOT: This prime Whanganui property, occupied by two national tenants, is being offered for sale.

A prime piece of Whanganui's central business district is on the market.

The building, at 101-105 Victoria Ave, is currently tenanted by ANZ Bank and Whitcoulls and has a current capital value of $2.7 million.

It's being marketed by the Auckland office of JLL, a global real estate firm specialising in commercial property and investment management.

The building was completed in 2009, has a 100 percent seismic rating and provides a total of 901sq m of floor space.

JLL agent John Binning said it was without doubt one of the prime retail spaces in the inner city.

Mr Binnings said the property is owned by a UK-based investor who built the shops and was a substantial investor in Whanganui owning a number of prime properties in the CBD.

ANZ Bank occupies 476sq m on the corner of the Avenue and Maria Place, while Whitcoulls leases the remaining 425sq m.

Mr Binning said ANZ has an 18-year lease expiring in 2028 and Whitcoulls has a 12-year lease expiring in 2021.

"This is a desirable asset for potential investors. The long-term tenants and the location amongst national and local retailers make this an attractive opportunity. Neighbouring retail properties have been recently developed to further enhance this strip."

In total the site covers 1531sq m and includes 22 carparks.

Mr Binnings said prime retail rents in Whanganui were sitting above $400 per sq m. On that basis that provides a return of around $360,000 a year.

"Prime yields in Whanganui, like other parts of provincial New Zealand, have strengthened in recent times, driven by investor demand and low interest rates. The passing rent for this property is in line with market rental rates and the modern construction means the new owner can expect minimal capital outlay," he said.

JLL is calling for expressions of interest from prospective buyers, closing that process off on June 16.