A highly visible property in the Bay of Islands with a tenant signed to a long-term lease presents prospective purchasers with a prime passive investment opportunity in one of the country’s most popular holiday regions.
11 Waimangaro Road, Opua in the Bay of Islands comprises two freehold titles with a combined land area of 4337sq m, housing a two-storey 660sq m building that includes a tavern, a bottle store, a two-bedroom apartment and the manager’s on-site accommodation.
The property is zoned Commercial Zone under the Far North District Plan and the current tenants began a 10-year lease in August 2021. The rental agreement provides $78,000 plus operating expenses and GST in net annual rental income.
Known as the ‘Gateway to the Bay of Islands’, Opua is a beautiful seaside town, long recognised as a sailing haven. Opua is one of the best places in Northland for exploring the water.
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Access to the property is gained through Waimangaro Road but the prominent site has 123m of frontage to State Highway 11. The property offers ample car parking, providing convenience for customers.
Colliers brokers Gawan Bakshi and Nigel Ingham have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 3 March, unless sold prior.
The ground floor bar area of the Roadrunner Tavern spans 129sq m with an additional storage area and a 33sq m conservatory. The first floor bar, kitchen, lounge and bathroom, which has been converted into the management’s residential premises, covers 151sq m.
The ground floor Super Liquor bottle store spans 114sq m, while there is office and storage space attached. There is also an 82sq m first floor residential flat, which has two bedrooms and is currently tenanted.
Bakshi, Investment Sales Broker at Colliers, says this site is extremely popular among travellers and locals.
“While the current tenant recently began a new 10-year lease, they also have four further rights of renewal for five years each, providing a long-term tenant covenant for the new buyer,” Bakshi says.
“The lease structure also includes two-yearly CPI increases with a market review in 2026 and further market reviews upon each right of renewal.
“Given the low site coverage of the property there is potential to develop or reposition the site in the future, adding further appeal for buyers.
“Opua is an idyllic spot from which to walk, exploring the rain forests of the Harrison Scenic Reserve, or the coastal curiosities found along the well-established Paihia to Opua Walkway.”
Northland, which comprises the Far North, Kaipara, and Whangarei, is a region that is in growth mode with an expanding population, rising employment opportunities, and significant investment in infrastructure through local and central government initiatives.
Ingham, Director at Colliers Whangarei, says the ongoing growth in Northland has created increased demand among buyers looking for high-quality investment opportunities.
“Recent research from Colliers notes that Northland’s GDP grew by an estimated 4.9 per cent in the year to September 2021, despite Covid-19-enforced trading restrictions impacting the September quarter figures,” Ingham says.
“The formation of new businesses and the expansion of established industries has seen employment expanding across the Northland region. As of September 2021, the regional employment count had reached 98,400, an annual increase of nearly 5 per cent.
“Annual retail spending within the region stood at $3.35 billion in September 2021, which is an increase of 11 per cent over the 2020 figure and exemplifies the ongoing growth of the Northland region.”
- Article supplied by Colliers
