The block at Rangitikei Street in Palmerston North comprises more than 2.8 hectares of flat land held over four individual adjoining titles. Individually, the landholding comprises three freehold titles and one leasehold title.
Located on the western portion of Palmerston North’s central business district, Rangitikei Street is the main high traffic volume dual carriageway route linking the central city with State Highway 3.
The flat Rangitikei Street property is situated within a well-established part of the city where surrounding properties consist largely of supermarkets, car sale yards, service stations, fast food operations, and nationally-branded bulk retailers.
The address is zoned Fringe Business under Palmerston North City Council’s district plan. The land use classification allows for the construction of large format retail premises and their associated substantial customer parking areas.
As part of the integrated approach to managing retail activities within Palmerston North, the Fringe Business zone provides for large format retail activities which could run complementary to the city’s Inner Business Zone which functions as the primary retailing precinct within the city.
The L-shaped property made up of 412, 416, 418-426 and 428-432 Rangitikei Street has been placed on the market for sale by deadline private treaty through Bayleys Palmerston North, Bayleys Auckland, and Bayleys Wellington, with offers closing on June 3. Salespeople Karl Cameron, Sunil Bhana and Mark Sherlock described the landholding as: “As a virtual ‘blank canvas’ development opportunity.”
“This parcel of high-exposure land would offer the best possible commercial development land in the city, without a doubt,” said Cameron.
“The property features predominantly bare land, except for one occupied commercial building on Rangitikei Street. With huge road frontage onto Rangitikei Street providing space for excellent access, there is also a secondary access via a laneway off Tremaine Avenue.
“The property is held in four separate titles dominated by a huge freehold land area of 2.6850 hectares, with smaller leasehold areas, and a further 1,201 square metres of land with a sizable warehouse building fronting Rangitikei Street.
“Holding income is generated from various portions of the site.”
Two companies currently lease space within the Rangitikei Street property. Wind turbine construction company Vestas New Zealand Wind Technology Ltd is on a nine-month lease generating annual net rental of $240,000 plus GST and outgoings. Vestas uses the site to store the huge blades which rotate around the windmill-like electricity generators in the hills above Palmerston North.
Meanwhile, Lucas Oil Ltd occupies the warehouse facility portion of the Rangitikei Street property, and is on a month-to-month lease generating gross annual rental of $12,000 plus GST. The warehouse premises comprises 896 square metres of high-stud warehousing space, 120 square metres of showroom area, 21 square metres of storage room, 104 square metres of low-stud warehousing space, 60 square metres of administrative office space, and car parking for nine vehicles.
“With the warehouse premises on its own land title and sustaining a relatively modern building of substance, any new owner of the Rangitikei Street block could either continue to operate that portion of the property in its own right, or include it as any part of the adjoining bare land,” Cameron said.
An urban development plan commissioned by Palmerston North City Council in the early 2000s, entitled the Palmerston North Retail Study, led to the creation of the Fringe Business Zone in which the Rangitikei Street lies.
The report concluded that there was a shortage of land for large format retailing activity in parts of the city, but was also cognisant of the need to support other retail localities within the greater city.
Bhana said a critical factor in creating Fringe Business Zones was that the areas fronted onto roads forming part of the city’s primary roading network as well as being located along one of the main entrance ways into Palmerston North.
“The property at 412, 416, 418-426 and 428-432 Rangitikei Street amply fulfills these criteria and is very much exposed to the public domain. Tremaine Avenue and Featherston Street also both contribute significantly towards the movement of traffic within Palmerston North and therefore have a high profile in terms of the number of persons travelling on these roads,” Bhana said.
Sherlock said the scale of the Rangitikei Street site would sustain the likes of a large format bulk retailer or supermarket-scale building reliant on considerable customer parking space and multiple vehicular entrance points.
“Alternatively, the location could be developed into a retail hub containing multiple mid to large-sized retailing operations and potentially even a branded fast food and beverage outlet too,” he said.