Paterson buys key retail site

Friday 31st August 2001

By Chris Hutching

One of Queenstown's plum redevelopment sites in the centre of town has been sold to Otago millionaire Howard Paterson for $6.25 million.

The prime 923sq m H & J Smith retail site at 25 Queenstown Mall was sold by tender and was expected to fetch between $5 million and $6 million based on the sale of an adjacent 1100sq m property known as the Water Wheel retail site next door.

The property was reportedly sold for $6 million earlier this year.

H & J Smith decided to sell the site because it has developed another bigger store at the Remarkables Park commercial precinct at Frankton near the Queenstown airport.

But the retailer still has three years to run on its lease and with the annual rental at $458,300, the sale price equates to a yield of 7.3%.

The property has potential for redevelopment according to Barry Robertson, Queenstown property valuer and local franchise holder of Bayleys Real Estate, which carried out the tender. Mr Paterson is an active player in the Queenstown property market with several landmark properties and has plans for one of the biggest residential subdivisions in the area around nearby Lake Hayes where he owns a residence.

He was recently involved in the $1.9 million purchase of the former Mount Cook depot in partnership with John Guthrie, John Martin and Brian Collie, which they subdivided into 18 unit titles of 150sq m for sale at prices between $250,000 and $500,000. And last month Mr Paterson and investment partner, John Darby, bought out the one-third interest formerly held by their other partner, John Martin, in the Steamer Wharf waterfront retail building which accommodates one of the town's two casinos.

Mr Paterson has set up an office in the upper level of the building next to Mr Darby's because he is spending more time in Queenstown mixing with the Lakes-District millionaire set, on a roll as the district's property values and activity hit a peak.

Comments from our readers

No comments yet