Two commercial properties in a strategic suburban location provide investors with a multi-dimensional opportunity to collect income from a nationally branded supermarket tenant and scope to develop the neighbouring workshop buildings.

The 2,565sq m (more or less) landholding at 271 Clyde Street features 31 marked car parks and a Business 5 – Suburban Centre Core zoning, potentially allowing for commercial development at street level and residential above, providing necessary density controls to maximise the prime location proximate to Waikato University.

Bayleys salesperson Alex ten Hove says the property is a blue-chip investment opportunity, with a strong tenant covenant, a high growth location, and future development prospects.

“Revenue pours in from the national brand tenant on a long lease, and rental growth is possible through the high-income development potential of workshop buildings.”

Built in 2015, the main building features a 359sq m (more or less) footprint, accessible front and rear, and returns $107,841.82 plus outgoings and GST.

The supermarket tenant has a six year lease to September 2027 with three six year rights of renewal. The lease provides built-in rental growth to CPI plus two percent biannually and market reviews every four years.

Next door, the high profile 336sq m (more or less) of workshop premises and large yard area could be readily leased or developed further with multiple options available under the current zoning.

“Development of the workshop would see a new owner fully maximise preferable zoning fundamentals whilst increasing their revenue stream for a further bite of the cherry.

“The result would be a trophy mixed-use asset in a highly desirable growth location,” he says.

Mr ten Hove is marketing the property for sale by auction with Bayleys colleague Luke ten Hove at 12pm on Thursday 14th March 2024 (unless sold prior).

Luke ten Hove says the block is positioned in a vibrant suburban location in Hamilton’s East with high-density provisions and promotion to vehicles and passing foot traffic.

“Shopping centres, national brand retailers, restaurants, recreational facilities, urban amenities and transport networks are all features of this neighbourhood, which benefits from proximity to Waikato University, the new Ruakura Superhub and Waikato Expressway.

“The current configuration provides a split-risk opportunity for future occupancy and excellent scope for high-income rental growth in a bustling academic and business precinct.

“Adjacency to the new Ruakura Superhub provides further value, being a major new freight and logistics node served by the East Coast main trunk line connecting Tauranga and Auckland via Hamilton and the new Waikato Expressway.

“The growth dynamics of this location are enormous, reflected by several high-profile housing developments planned across the region and development entities displaying their commitment to Hamilton as a commercial, industrial and residential growth node.

“We expect strong interest in the assets, particularly from add-value investors seeking the all-important combination of capital growth and security,” Mr ten Hove says.

Click here for more information on the listing.