Waterfront retail in picturesque Paihia
The fully tenanted 14-unit property on the corner of Marsden and Williams Rds is indicated by a blue border. Photo / Supplied
A prime waterfront retail property for sale in picturesque Paihia offers a chance to secure a split-risk investment in one of the Bay of Islands’ most popular tourist destinations.
Colliers International and NAI Harcourts have been jointly appointed to market the fully tenanted 14-unit property on the corner of Marsden and Williams Rds, a sale by deadline private treaty.
Offers on the 1124sq m freehold property close on November 2, unless sold earlier.
Colliers International Capital Markets Director Blair Peterken says the property offers solid annual rental returns of $701,144, with locked-in future rental growth.
“This is an opportunity to acquire a tidy earner in a slice of paradise,” Peterken says.
“Paihia is a thriving tourist hotspot that has benefited greatly from a substantial up-tick in visitor numbers and an increase in tourist spending.
“This prime retail corner sits on the waterfront of Paihia and State Highway 11 – a main route to many Northland tourist destinations.”
Located only 60km north of Whangarei, Paihia is the main tourist town in the Bay of Islands – an area famous for its white sandy beaches and more than 140 idyllic subtropical islands.
“With its abundant natural beauty, Paihia offers a range of tourist activities including scenic boat tours, dolphin and whale watching, horse trekking, big game fishing, parasailing and paragliding, skydiving, kayaking and sailing.
“There are plentiful scenic walks in the area, beautiful beaches, and the popular Haruru Falls swimming hole, located only 3km from town.”
Peterken says the property for sale is on two titles at 68 Marsden Rd and 9 Williams Rd.
“It is tenanted by the Bay of Islands Information Centre on the corner, and three souvenir and gift shops – Neptune’s, Wahine Creationz and Classique Souvenirs,” he says.
“Three food shops – Cellini’s ice cream store, Sauce pizza restaurant, and Vinnies Takeaways – all benefit from the waterfront location.
“The property is also home to six other food shops, namely Avo Sushi, Jimmy Jack’s Rib Shack, Letz Cafe, Fritz’s Weiners, Kelly’s Cafe and an Asian Noodle Bar.
“The remaining tenant is well-known Australian surf and clothing retailer Rip Curl.”
The lease terms range between three to 12 years, with an average weighted lease term of 5.27 years across all tenancies. The agreements have a mix of both market and fixed rental increases.
Colliers International Capital Markets Director Jason Seymour says the property is well-positioned to benefit from New Zealand’s ongoing tourism boom.
“Ministry of Business, Innovation and Employment (MBIE) figures show a record-breaking 3.7m tourists visited New Zealand in the last year.
“That influx has had clear benefits for Northland. MBIE estimates tourists spent $1.098 billion in Northland in the year to July – a 10 per cent increase over the previous year.”
Seymour says strong visitor numbers have also led to a larger number of tourism offerings and greater accessibility to popular destinations such as the Bay of Islands.
“Tourist demand has resulted in more frequent regional flights, making it much more convenient to fly to tourist destinations such as Paihia,” he says.
“Air New Zealand now provides several daily flights to and from Kerikeri Airport, which is only a 20-minute drive from Paihia.”
The cruise sector is also contributing greatly to the Bay of Island’s success.
“More than 280,000 cruise passengers are expected in the 2017-18 season, injecting an estimated $500m into the New Zealand economy,” Seymour says.
“The Bay of Islands is a key spend area for cruise passengers visiting New Zealand, therefore growth in the cruise sector has many benefits for the tourism industry in Paihia and the Bay of Islands.”
NAI Harcourts Broker Peter Peeters says the property for sale has plenty of future add-value potential.
“It is zoned Commercial A3 under the Far North District Plan, which allows for flexible development of commercial premises up to 10m in height.”
Peeters says Paihia is a three-hour drive from Auckland via the North Island’s main route, State Highway 1, and only an hour from Whangarei.
“Bus services are available at a reasonably low cost and operate regularly,” Peeters says.
“Most major bus companies operate a service to Paihia from various destinations in the North Island.”
Four local ferry services operate between Paihia and the historic town of Russell, which is another popular Bay of Islands destination.
“These services operate as frequently as every 10 minutes at peak times. Vehicle transport is also available on some services if required.”
Other popular Bay of Islands destinations outside of Paihia include the historic town of Kerikeri and the 404ha Waitangi Regional Park.
“Waitangi was where Maori and the British Crown signed New Zealand’s Treaty of Waitangi in 1840, and has become known as the birthplace of New Zealand.”