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Family centre is a long-term development ‘play’

A centrally located commercial premises allows purchasers to collect immediate income whilst making long-term development plans, Bayleys salespeople say.

The corner site on 765sqm (more or less) of freehold land at 14 Middle Road is in a position primed for future development on the fringe of the bustling Havelock North Village retail shopping precinct.

Bayleys salesperson Jodie Woodfield says that the Hawke’s Bay regional economy has been performing well, offering a new owner an excellent opportunity to secure a foothold in the low-vacancy Village zone.

“Confidence in the regional economy is reflected by capital investment in both public and private infrastructure, with employment high amid post-cyclone cleanup activity.

“Despite this, new construction activity for both residential and non-residential buildings is particularly weak, and forward-looking investors hotly contest the finite supply of property assets with development potential.

“Havelock North is close to its commercial capacity, with additional demand from a growing population putting upward pressure on property prices and current rental rates.

“These dynamics provide an opportunity to leverage the subject property’s favourable zoning fundamentals for a long-term play whilst collecting immediate income from the established family centre occupant.”

Woodfield is marketing the property for sale by auction with Bayleys colleague Kerry Geange. The auction is scheduled for 3:00 pm on Friday, 19th April 2024 (unless sold prior).

Improvements spanning 250sq m (more or less) include a single-level dwelling converted for commercial use as a family centre and childcare facility licensed for 40 children.

The Havelock North Family Centre recently exercised its second of three, three-year renewal rights, with the current term running to July 2026.

The property returns a net annual income of $53,560 plus GST and outgoings.

Bayleys salesperson Kerry Geange says the premises presents a multi-dimensional investment opportunity for a variety of purchasers, including developers, passive and add-value investors, and land bankers.

“Local Council has confirmed a mandate to facilitate more housing in residential areas, with the subject property being a prime candidate for higher density expansion in the future, given its high-profile position on the corner with Porter Drive and proximity to the village amenity precinct.

“Dual street frontage provides ease of access and multiple development options, whilst we expect that the location and sheer scale will be a key attraction from purchasers with a view to the future.”

Estimates suggest that Havelock North’s local population is set to grow by 22 percent in the 25 years to 2048, placing immense pressure on existing housing supply and the development pipeline.

“Residential property prices in Havelock North have continued to perform above the long-term average despite a recent market downturn, reflecting the supply-demand imbalance and an opportunity for developers to utilise the subject property for maximum advantage.

“Appropriate development subject to council approval would ensure maximum site use, and the opportunity to collect income from the established tenant provides some breathing room for investors to put plans in place and ensure the implementation of a robust development strategy.”

Click here for more information on the listing.

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