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News Release

Auckland

Prime commercial investment opportunity in Thames

JLL is marketing a high profile property in a core retail area 


 

 

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JLL is marketing an iconic property at 517 Pollen Street in Thames. 

The two level 1,078 sqm reinforced concrete building dates back to 1937 and occupies a 1,521 sqm site in the town centre.

The property is being marketed by JLL agent Jason Armstrong through an expression of interest campaign closing on 12 April 2017.  

The ground floor is leased to NZ Post through to 2028 and the first floor accommodates five tenants. The rear of the site is a carport that forms part of the NZ Post tenancy. There are also two older style masonry buildings which are currently vacant. Surrounding development comprises a mix of low rise commercial buildings providing retail accommodation. 

“The property is in a prime location and the tenancy with NZ Post accounts for around 75 percent of the overall income making 517 Pollen Street a secure investment,” says Armstrong. 

“The property is currently returning $119,511 (part gross) but there is potential to add value by increasing the rental income or by converting the existing space,” says Armstrong. 

Armstrong says there is also scope for redevelopment under current zoning rules. 

“Zoning rules for Thames town centre under the district plan are activity based rather than zone based. This means there is greater flexibility in how the site could be used by investors,” says Armstrong.     ​

Tom Barclay, National Research Manager at JLL, says the demand for commercial and industrial property in provincial towns has increased over the past two to three years. 

“As returns have been squeezed lower in the main centres, investors have looked to the regions for higher yielding property,” Barclay says.  

“Investment sales yielding below 6% are now commonplace in Auckland, and with a tight supply of property to the market, competition for assets is tight. Investors are increasingly looking to the Hamilton, Tauranga and Taupo markets.” ​