Investors Set To Flex Their Muscles As 24/7 Gym Premises Comes Up For Sale

The land and building housing a provincial branch of one of New Zealand’s biggest gym and fitness centre operations - along with a trio of inner-city apartments - have been placed on the market for sale.

The two-storey premises at 306 Gladstone Road in Gisborne’s central business district is occupied on the street level portion by the city’s Jetts 24-hour fitness operation, and encompasses an 800-square metre building sitting on 817 square metres of freehold land - which includes substantial customer and tenant car parking space.

With 56 clubs nationwide Jetts 24-hour fitness operates a self-service style fitness centre and gymnasium service – allowing members unlimited 24-hours a day/7-days a week facilities through an electronic key card entry system.

Founded in the Australian state of Queensland in 2007, Jetts now manages franchise-owned and operated fitness studios in Australia, New Zealand, the UK, Thailand, and the Netherlands.

After opening its first New Zealand operation in Auckland in 2010, the company soon went on to win the Best Medium-Sized Fitness Company at the New Zealand Exercise Industry Awards.

In 2016, the Jetts’ parent company was acquired by Quadrant Private Equity, which now operates the brand alongside its other Australian-based gym brands Fitness First, Goodlife, and Hypoxi.

As part of a global entity, Jetts Gisborne is currently on a five-year lease at the Gladstone Road site, running through to 2025 paying $85,795 plus GST per annum - with a further four-year right of renewal. All operating expenses are paid by the tenant.

While Jetts 24-hour fitness occupies the ground floor of the building, the property also contains three apartments on its upper level – a one-bedroom flat, a two-bedroom flat, and a three-bedroom flat – each on individual residential tenancy agreements. Combined, the residential components of the property at 306 Gladstone Road generate weekly income of $875.

The land and building on the corner of Gladstone Road and Cobden Street are now being marketed for sale by deadline private treaty through Bayleys Gisborne, with the process closing on November 26. Salesperson Mike Florance said the split-risk nature of the fully-tenanted site delivered a combined net annual income of $131,295.

“Jetts’ commercial open-plan ground level portion of the building has been refurbished to a high standard - befitting a modern gymnasium facility containing a multitude of exercise equipment options and weights stations, along with bathroom and shower amenities,” said Florance.

“Meanwhile, at the rear of the property – accessible from Cobden Street – is car parking for 12 vehicles for use by tenants in the flats upstairs, and by gym patrons. There is also an abundance of public car parking immediately outside the building on both streets, and with Jett’s 24-hour business model allowing for facility usage at any hour of the day, this provides a high degree of patron amenity.”

Running through the middle of the city, Gladstone Road is Gisborne’s foremost retail strip. Ironically, the Jett’s 24-hour fitness gym is located immediately across the road from fast-food outlets KFC and Burger King, with Carl’s Junior located just a few doors away in the same block.

Florance said the residential regeneration of Gisborne’s central business district was gathering momentum – with several new apartment conversion projects both in the pipeline, and nearing completion with strengthening and refurbishment work being undertaken.

“These include new apartment conversions being undertaken above the Cooperative Bank on the corner of Peel Street and Gladstone Road, above the Perfect Roast premises on Gladstone Road, and in space above Verve Café also on Gladstone Road,” said Florance.

“Ensuring the long-term viability of the city’s central business district’s retail entities – including hospitality and service businesses such as Jetts 24-hour fitness – by encouraging residential occupancy makes pure commercial sense. The council is to be commended for its vision on this strategy.

“Many of Gisborne’s central city heritage buildings were constructed during the early and middle part of last century when the requirement to have a residential component on their first floor of structures was virtually a mandated part of the architectural plans – so what we are seeing now along Gladstone Road is simply history being repeated.

“With its three residential tenancies, the building for sale at 306 Gladstone Road offers central city living for those wishing to rent rather than own.”

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