A pet project for property investors
A landmark building on the corner of Hamilton's Tristram and Mills streets, a purpose-built veterinary practice, is on the market.
The property is tenanted by The Pet Doctors, and is subject to a lease to 2016 with rights of renewal.
The building has a total floor area of 666.17 square metres and the land area is 1553sqm over three titles.
The property is offered for sale by negotiation.
Marketing agent Mike Swanson of Success Realty, Bayleys, said that, by way of purchase price guidance, the annual rental return was $165,288 plus GST and outgoings, and the purchaser could expect a 7.5 per cent yield.
He said the building was about 15 years old, and was extended in 2005 to add extra surgeries, a boarding cattery, offices and a further seven car parks accessed off Mill St. It had 12 car parks off its main Tristram St entrance.
The property had potential for rental growth and capital increase, Swanson said.
It is freehold over three titles. The property is zoned commercial services under the proposed Hamilton district plan, operative in part.
This zoning enables a wide range of moderate to low intensity commercial, community and service activities on the fringe of the central business area, with emphasis on vehicle-orientated retail activities.
Swanson said the property is subject to a lease to Pet Practices, initially for 10 years from October 1 2005. A variation to the lease extended the current term to September 2016, with two, six-year rights of renewal, he said.
The rental was reviewed on June 1 last year and would be reviewed two-yearly in future.
Swanson said a recent change of ownership in the veterinary tenant company, from the Pet Practice to the Pet Doctors, would technically have required an assignment of the lease, but there was no formal deed of assignment in place and the tenant remained Pet Practices Ltd.
The total annual rental return includes $117,241 per year for the ground floor, boarding cattery $8863, mezzanine cattery $4236, first floor offices and facilities $10,2248, and 19 sealed and marked vehicle parks $24,700 a year.