Landmark seaside cinema property for sale

11:30 AM Wednesday August 12, 2015 Colin Taylor

Sumner’s Hollywood Cinema and Coffee Culture Café.

The 77-year-old Hollywood Cinema building in the Christchurch seaside suburb of Sumner is for sale for the first time since the 1970s, along with the property housing the Coffee Culture café next door.

The cinema, at 30 Marriner St, is a well-known local landmark and is the only original suburban cinema in Christchurch still standing.

The property is being marketed by Savills’ agent Ben Cameron and is for sale by deadline private treaty closing on September 10 unless it sells earlier by negotiation.

Cameron says the sale offers an excellent opportunity for an investor to secure a significant 1077 sq m land holding in the heart of a sought-after suburb, with two well-known tenants on new leases.

“This large property occupies a prime spot on the main road through Sumner, in the centre of the village. It’s arguably the best corner site in the town – not to mention one of the largest commercial land holdings available in the suburb.”

“This makes it an excellent proposition for property buyers looking to secure an income-generating asset in a prominent location.

“We expect a lot of interest from locals in this property which has been held by the same owner for decades. For Sumner residents, there will be real ‘trophy’ value in being able to drive past their investment every day.”

Cameron says the high demand for commercial property in Sumner, driven by local residents looking to diversify their portfolios with accessibly-priced commercial holdings, has created a tight market with yields heading downwards.

The property’s split-risk income stream and strong tenant covenants are also expected to be big drawcards, Cameron says. “The café and cinema operators are well-established here and will be signing new leases, indicating their commitment to this location. Both businesses are well-known and popular among Sumner locals.”

Coffee Culture has occupied its share of the property, in a freestanding two-level building next to the cinema, since 1999. It was the first Coffee Culture outlet in what is now a large franchise with stores across Christchurch, as well as Timaru, Hamilton and New South Wales.

The operators will take a new 10-year lease to the property dating from this month, with rights of renewal providing a possible final expiry date of August 2030.

Hollywood Cinema will continue to be run by the current operator, Lang Masters, who has managed it for more than 50 years. It is offered to investors with a new five-year lease in place, with rights of renewal also potentially extending the lease to 2030.

The Hollywood opened in 1938 with a single cinema space, with a second cinema added in 1976 and a third in 1999. The venue won the People’s Choice Award for Independent Cinema of the Year at the NZ Motion Picture Awards 2014.

Some vacant land, which is currently used for customer car parking, is also included with the property.