Cinema and retail hub placed on market for sale

A large block of land and buildings housing a multi-screen cinema, gymnasium, and liquor outlet in one of New Zealand’s foremost coastal holiday towns have been placed on the market for sale.

The property at 1A Lee Street in Whitianga on the Coromandel Peninsula is located in the heart of the town’s central business district, and houses Mercury Twin Cinemas, Whiti Cross WOD gym, and Liquorland Whitianga in a terraced configuration with street parking immediately in front of all three businesses.

Screening current films in two separate cinemas six days a week, the independently owned and operated Mercury Twin Cinemas is a well-established feature in Whitianga’s entertainment scene, as the town’s sole cinema facility running for more than 20-years. A ticket office, snack counter, and customer bathrooms are situated at the front of the premises.

Meanwhile, adjacent neighbour Whiti Cross WOD (workout of the day) is a neighbourhood gym facility running classes and training sessions for all ages and levels of fitness – utilising a mix of both machines and free weights. Climbing ropes for vertical exercises are attached to the building’s high stud steel roof girders. Gym membership is available on casual, weekly, or monthly subscriptions rates.

Third tenant Liquorland Whitianga at the end of the block is part of the national liquor retail chain Liquorland which has some 175 sites across the country. The Liquorland brand is owned by parent company Foodstuffs, with some sites operating under a franchise model. In the Coromandel region, Liquorland has stores in Whangamata, Thames, and Whitianga.

The property at 1A Lee Street in Whitianga consists of some adjoining 952-square metre commercial buildings sitting on approximately 1,286-square metres of freehold land zoned for commercial use under the Thames Coromandel District Council plan.

A sealed service lane runs along the rear of the building allowing for the discreet and efficient storage of rubbish skips away from public view. Liquorland also has roller door access onto the lane for efficient delivery of products into its warehouse storage space at the back of the main store.

The land and buildings at 1A Lee Street in Whitianga – directly opposite the council-run Lee Street Car Park which has no time restrictions for parking – are being marketed for sale at auction on April 17 through Bayleys Whitianga. Salesperson Josh Smith said the underlying diversity of the property’s balanced split tenancy would appeal to passive investors looking for readily recognisable tenants well established in their respective sectors.

“Operating in three totally different markets serving totally different customer dynamics, the cinema, gymnasium, and liquor store within the Lee Street block are located some 100 metres from Whitianga’s main retail spine... Albert Street,” Smith said.

”The building has been very well maintained over its life – as befitting of the tenants, which rely on their respective professional environments, whether that be sitting in a comfortable chair watching the latest Tom Cruise movie, sweating it out lifting weights on the gym floor, or selecting a bottle of chardonnay for the weekend barbeque. Additionally, the current owner has been highly diligent in their administration of rent reviews and adjustments – ensuring the tenants are comfortable with lease levels and structures.”

The property generates annual rental income of $152,280 plus GST and outgoings. The three tenancies comprise:

• Liquorland Whitianga on a current five-year lease, with five additional five-year rights of renewal
• Mercury Twin Cinemas on a current five-year lease with five additional five-year rights of renewal
• Gym operator Whiti Cross WOD on a current lease running through until April 2028

Smith said that with Whitianga’s population continuing to steadily grow, there was also a parallel need for social infrastructure to support the increasing number of residents – with the three services operating in 1A Lee Street amply meeting those social requirements.

Over the past decade, Whitianga has grown to become New Zealand’s foremost big game fishing destination – with bountiful billfish found off its shores, and anglers coming from within the country and abroad to partake in the recreational activity. Whitianga now annually hosts one of the most lucrative big game fishing events in the Southern Hemisphere, the Kubota Billfish Classic which was held recently – buoyed by a potential prize pool of up to $1.8million including a $400,000 cheque for the heaviest billfish.