Te Rapa Shopping Centre for sale
The Te Rapa Shopping Centre has been put on the market with vendor KCL Property asking for a minimum offer of $8 million.
KCL is one of New Zealand's biggest commercial property syndicators, managing a portfolio worth more than $750 million
The company bought the Te Rapa building in 2009, part of a $50 million deal that year to add to its portfolio.
Zoned suburban centre by Hamilton City Council, the retail shopping centre is on the corner of Te Rapa Rd and Garnett Ave with more than 27,000 vehicles passing by the site each day.
The sale is banking on the centre's long established anchor tenant, fabric and home furnishing retailer Spotlight, which pays about $450,000 annually for about 3000 square metres of space.
Spotlight Retail Group purchased the property and refurbished the building in 2006 before relocating to the site.
KCL is affiliated with the Spotlight Retail Group, and bought the building in full in 2009, leasing it back to the home furnishing shop.
KCL development and projects manager Stephen Brown-Thomas said the syndicate was looking for offers of $8 million or above for the building, which is at 72 per cent of New Building Standard.
He said the company was selling to maximise on the price in the current market.
"We feel it's an opportune time in market for potential disposal. The Waikato market is starting to come back."
The property has a $5.8 million capital value according to Hamilton City Council's rating valuation records.
Its seven tenants return more than $640,000 a year.
Spotlight is on an 11-year term until 2019, with two existing right of renewals of six years each.
Other tenants include Te Rapa Pharmacy, Dance Effects and the Salvation Army.
There are 114 on-site car parks, which KCL has recently resealed, Brown-Thomas said.
NAI Harcourts is marketing the property, which is for sale by negotiation.