A block of shops for sale in central Blenheim could be a golden investment opportunity, but don't worry, the Thai restaurant and the sushi store are likely to stay. The 1948-square metre commercial property, comprising two buildings on the corner of Kinross St and Scott St, has been listed for sale after many years in a public trust.
Bayleys Marlborough commercial real estate agent Grant Baxter said it was unusual for a block of shops this size to come on the market in Blenheim, especially with all the shops fully-tenanted, so he expected plenty of interest.
"It gets better returns than money sitting in the bank. Lots of people are looking for good returns in the CBD," Baxter said.
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Baxter said he had sold several commercial properties to out-of-town investors lately so it was likely the block of shops would attract their interest.
"Investors in the cities, Auckland, Wellington, Hamilton, Tauranga, are getting very low returns on their investments, so they are now going out to regional New Zealand."
Poppy Thai on the corner had been purchased by new owners and was undergoing a makeover, being renamed Thai9.
Lynfords Furniture, dtr Blenheim and Sakim Sushi were long-term tenants who had been there several years and were likely to stay on, Baxter said.
"That's the strength of the investment ... it's pretty safe."
While a few empty stores lingered north of Main St, the south side of the central business district was a busy area, Baxter said.
"It is quite a high traffic area down there, there's hospitality places, the swimming pool and the cinema. So it has good visibility and there's lots of foot traffic."
A 90-bed YMCA backpacker hostel would open on the other side of Scott St in February or March next year, intended to service tourists and large groups visiting the region, and alleviate pressure on the under-stocked housing market.
A boutique hotel was also planned for The Loft, formerly Shapeshifters, on Kinross St, opposite the cinema.
Both projects would bolster foot traffic and commercial spend in the area, Baxter said.
"That will be good to see, there's a real shortage of accommodation at the moment so that will alleviate things somewhat.
"It could be quite a passive investment, it could be fairly hands-off."
The rateable value was $2.46 million, but the level of interest in the property would determine its true value, Baxter said.
"We are expecting a lot of interest so I would encourage people to put their offers in."
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