Iconic St Kevins Arcade is up for sale again

A grand old dame on Karangahape Road is up for sale.

The 90-year-old St Kevins Arcade is currently owned by the Icon Group, run by real estate personality, Paul Reid.

Mr Reid purchased the building in 2015 and has since poured nearly $3 million into the refurbishment, including a mass re-tiling.

On a TradeMe listing the development is said to provide its next owner with a total net annual rental income of approximately $1.168 million.

Mr Reid said the decision to sell was in line with the group's business model which was to find under-performing real estate assets and then add value by enhancing and making them more desirable for other investors.

He said most of the shops had been put on 10-year leases, securing their positions in the arcade.

These include hospitality venues: Gemmayze Street, Bestie Cafe, The Burger Bar, Lord of the Fries, Whammy Bar and the Wine Cellar.

New Zealand Property Investors Federation chief executive Andrew King said having most of the shops on long-term leases provided more security of an annual income for the next buyer.

Mr King said: “It can add value to the property to know the tenants are guaranteed for 10 years.”

Wine Cellar owner Rohan Evans said he was surprised the sale of the arcade happened so quickly after Mr Reid bought the property.

Mr Evans said the biggest change to the arcade over the past two years was the move towards more of a nightlife area by adding in restaurants such as Gemmayze Street.

Karangahape Road historian Edward Bennett said buyers would be able to capitalise on the new dining scene in the arcade as it had previously been viewed as a daytime retailing space.

Gemmayze Street’s Samir Allan said he felt comfortable knowing most of the stores would be in the arcade for a while because of the new leases.

Mr Allan said the new buyer needed to understand K’ Rd, otherwise it would be bad for the arcade.

The arcade was listed on TradeMe on May 10. Photo: Hannah Ross