Commercial units just the ticket in Queenstown
Three commercial units for sale are at 24 Hawthorne Dr, Queenstown, on the ground floor of the Ramada Hotel complex. Photo / Supplied
Three retail units for sale on the ground floor of the Ramada Hotel complex are expected to attract the attention of investors here and overseas.
The freehold units — located in Remarkables Park, 24 Hawthorne Dr — are being sold by CBRE agents Ellie Martin, Richard Larman and Deborah Dowling. They are to be auctioned on November 23, unless sold earlier.
“Getting into the hot Queenstown property market with an accessible bite-sized investment such as these units is a great opportunity — especially within these price ranges and given the strong tenant covenants in place,” says Martin.
She says it’s hard to fault the location — right at the heart of a master-planned community and within easy reach of both airport and state highways running north and south.
“Tenants benefit from being part of the Ramada Hotel complex, and the assured patronage flowing from that. The location also capitalises on what is set to become Queenstown’s new town centre and service hub.” Martin says hundreds of homes are planned for residential developments within 2km of the property.
“Plans were recently announced for a 6000sq m medical facility and work has begun on a $5.5m, 992sq m office building on Hawthorne Dr. In February next year a new secondary school is to open its doors to 1800 students. So everything points to continued population growth in this part of Queenstown,” says Martin.
The leasable area of the three units is 530sq m, delivering a total of $300,900 net income per annum.
- Unit 2 houses houses car rental company Aerodrive and earns $32,000pa net on a 58sq m site; along with physiotherapy clinic Queenstown Body Works generating $51,400pa net from an 88sq m site.
- Unit 6 houses Strada Cafe on an eight-year lease for a 228sq m site earning $128,400pa net.
- Unit 7 houses financial services company Loan Market, on a six-year lease for a 95sq m site and paying $52,550pa net; along with optometrist, Queenstown Eye, on a five-year lease and paying $36,550pa net for a 61sq m space.
Larman says the property is of an affordable investment size and has attractive rental terms with personal guarantees and built-in rental growth.
“Queenstown airport experienced 1.86 million visitors last year with an increase of about 5.2 per cent in visitor growth from 2016-2017.”
According to a latest Infometrics report the local economy grew 9.6 per cent in 2016 compared with 2.5 per cent across New Zealand. The Queenstown population sits at about 34,700 people, trending upwards at a growth rate of 7.1 per cent.
“With increasing tourism and associated activity, the region is benefiting from strong economic growth with a focus on construction to support the demand. Low supply of stock plus high investor demand has resulted in a market showing incredible buoyancy,” says Larman.
“This is a chance to secure new retail units as a freehold unit title investment at Queenstown, with both long-term tenants and good covenants in place.”