Strategic buying chance in Frankton
The freehold site at 8-12 McBride St is presently leased to a car rental company. Photo / Supplied
The auction of a well-located commercial property, leased to a car rental company in central Frankton near Queenstown, is being described as ‘a strategic acquisition opportunity”.
The 759sq m freehold site, at 8-12 McBride St, is located on the southwest corner of the Frankton Village block, just off one of the busiest intersections in the Queenstown Lakes region.
Marketed for auction sale by Colliers International brokers Mark Simpson and Rory O’Donnell, the property is due to go under the hammer at 11 am on April 12 at the agency’s offices at 10 Athol St, Queenstown.
“Frankton is the centre of most of Queenstown’s commercial, residential and infrastructure growth. This site’s position just behind the main BP roundabout in central Frankton makes it perfectly located for access to Frankton’s residential, retail and commercial developments as well as the Queenstown town centre.”
O’Donnell says the property is leased to Omega Car Rentals until September 2018, thus providing holding income.
“With the existing lease coming up for expiry later this year, the buyer gets the benefit of a short-term income stream while they plan their future use of the site. There are several options available including re-negotiating the lease or re-leasing to a new tenant, holding the site as a land bank investment as well as long-term re-development potential.”
Simpson says subdivision of the site could also be a longer-term possibility, subject to the relevant consents being granted. “Given the fast pace of growth in Frankton, subdividing and on-selling separate titles may also be an option in the future.”
The building on site – a 145sq m three-bedroom house – has been altered to house commercial tenancies and also has a garage, car port and onsite parking.
The immediate locality serves as the gateway to Queenstown, with well-established retail, service, hospitality and office developments surrounding the property as well as a residential area.
Development in the Frankton Flats area encompasses large-scale commercial, retail and residential projects, with substantial new development completed and proposed over the next few years including Five Mile Building 8 (under construction), Queenstown Central (under construction), Shotover Park (under construction), Queenstown Airport and Remarkables Park Town Centre.