Te Rapa site anchored by global gym

The modern commercial premises housing four tenants, including a global fitness chain and famed kiwi brand Para Rubber, are up for sale in Hamilton’s Te Rapa commercial and industrial stronghold.

The more than 2,500-square-metre freehold site sits in a prominent position with more than 50 metres of frontage on Karewa Place. It is fully leased to 24/7 gym chain Snap Fitness, along with Para Rubber, international Pilates studio 247 Pilates, and Hamilton-based international software developer Lonrix.

The leases return a combined annual net rental income of $311,443 plus outgoings and GST, with all lease agreements delivering built-in rental growth.

The property at 5 Karewa Place, Pukete, Hamilton, will go under the hammer at an auction on Thursday 19 March, unless it is sold prior. It is being marketed for sale by Alex ten Hove and Luke ten Hove of Bayleys Hamilton.

The smart, low-maintenance buildings of some 1,194 square metres were designed by Hamilton’s Noel Jessop Architecture and constructed in 2014. These sit on an Industrial-zoned site spanning 2,520 square metres (more or less). Common on-site parking for 38 vehicles is shared by the tenants.

Alex ten Hove said the property offered investors a rare combination of stability, flexibility and built-in rental growth.

“The building was constructed to a high quality, with modern amenities and a layout that accommodates multiple tenancies. The well-respected, established business tenants not only provide rental security but also enhance the site’s profile and attraction.

“In addition to the reliable diversified income, the coveted Te Rapa location supports significant potential for capital growth,” Alex ten Hove said.

Snap Fitness occupies its Karewa Place gym of some 422 square metres on a current lease that extends to 2030, with a further six-year right of renewal.

The company operates around 60 gyms across New Zealand and has won multiple industry accolades, including Best Fitness Franchise at the 2022 Global Franchise Awards.

Para Rubber’s approximately 420-square-metre Pukete outlet is leased through to 2027 with a further six-year right of renewal. Since its beginnings early last century, Para Rubber has established itself as an iconic Kiwi brand and leading provider of rubber, foam, pools and related products with a national chain of 10 stores.

247 Pilates Hamilton is part of a growing chain with around 40 Pilates studios across Australasia. Its Karewa Place studio of some 226 square metres is occupied on a lease running to 2030, with two further five-year rights of renewal.

Lonrix’s team of civil engineers, software engineers and data analysts is headquartered in the building. The business provides cloud-based software and asset management solutions for clients in New Zealand, Australia, South Africa and Indonesia. Its approximately 126-square-metre premises are currently leased through to 2027, with a further right of renewal to 2030.

Luke ten Hove said the Pukete/Te Rapa location was a key advantage.

“Karewa Place sits at the eastern edge of the north Hamilton business bastion of Te Rapa where it borders an expansive residential catchment to the east.

“Positioned within a strong mix of industrial, commercial and retail activity – including one of New Zealand’s largest retail destinations, The Base – this is a great location for businesses looking to combine operational efficiency with convenience and visibility.

“It also offers ready access to key roads enabling movement across Hamilton and beyond. Just minutes from the Waikato Expressway, this location connects seamlessly to locations north and south, providing easy access to the Golden Triangle linking Hamilton to Tauranga and Auckland,” Luke ten Hove said.