The constructing, fronting Seashore, Rees and Shotover Sts, has been purchased by a non-public high-net-worth Australian investor.
Consequently, the constructing’s sole vacant tenancy will now be occupied by a high-profile Aussie retail model.
Tiki Nook had been owned by investor Les Keeper’s Metropolis Centre Queenstown Ltd, which purchased it off Irish billionaire the late Eamon Cleary for $13m-plus in 2007.
The constructing was Keeper’s final Queenstown CBD property — he previously had pursuits in eight CBD properties together with two in The Mall.
This newest deal was brokered by native Colliers brokers Mark Simpson and Rory O’Donnell.
Simpson says they’d deliberate to market the property final 12 months however pulled again as a result of first Covid lockdown.
When tenant Mikael surrendered its Seashore St/Rees St nook lease earlier this 12 months, Keeper determined to make use of the chance to improve the premises, together with lifting its seismic ranking to 100%.
Three months in the past, Colliers’ plans to relist the property had been foiled by one other lockdown, in order that they focused a small group of certified consumers ‘‘off market’’, earlier than the profitable firm was chosen.
The $32.5m price ticket represents a 3.25% yield, given the constructing’s annual lease roll.
Different tenants embody Ferg Bar, Ugg, Outstanding Candy Store and Southern Lakes Information Centre.
Simpson says ‘‘the quantum [paid], the low yield and the actual fact it was chased by a couple of social gathering is a very stable underwrite for business property funding in Queenstown in arguably probably the most risky instances in a protracted, very long time’’.
Different current CBD gross sales embody $23.25m for the Glassons constructing (2018), $17m for Rees St’s BNZ constructing (this 12 months) and, in 2019, $8.9m for the top-of-The Mall Sightseeing Group constructing and $5.3m for the Salvation Military constructing.
