New owners are being offered the chance to unleash the potential of a landmark Rotorua office tower which is up for sale.

Positioned on Hinemoa Street in the city centre, Hinemoa Tower is Rotorua’s tallest building, with sweeping views across the inner city and Lake Rotorua from upper levels.

Its entire western side is decorated with a striking Māori-inspired mural visible from much of the inner city. This multicoloured artwork commemorates the 100th anniversary of the completion of a doctorate at Oxford University by Te Arawa leader and Te Whakarewarewa guide Mākereti Papakura, the first Māori woman to achieve this.

The giant mural was painted in 2023 by her granddaughter June Grant, in collaboration with Dreamgirls Art Collective. Maggie, a film documenting the project, brought the building and mural to international prominence when it was selected to feature in the Hawaii International Film Festival.

Now available via a mortgagee sale, the eight-level tower is around 41-percent leased to diverse tenants including Rotorua English Language Academy, Employee Assistance Programme Services, and telecom companies One New Zealand, 2 degrees, and Kordia.

The leases generate an estimated total gross rent of nearly $200,000 per annum.

The freehold property at 1154 Hinemoa Street, Rotorua, is being offered for sale through Mark Slade, Damien Keenan and Brei King of Bayleys Rotorua. It will go under the hammer at an auction on Tuesday 27 May, unless sold prior.

The 1970s-constructed building offers some 2,346 square metres of total floor area, with a net lettable area of 1,996 square metres (more or less). It sits on an approximately 336-square-metre site with good access to on-street parking.

Slade said the sale offered a rare and compelling opportunity to acquire an iconic Rotorua building and realise its full potential.

“With its unparalleled CBD positioning and untapped potential, Hinemoa Tower will grab the attention of buyers looking to redevelop, grow their commercial property portfolio, or secure a landmark investment in Rotorua's commercial heart.

“A key point of difference is that the majority of the smaller tenants are established telecommunications businesses – who require air-conditioned computer rooms on the south side, and roof-top space for specialist telecoms equipment due to the height of the building – and are on long-term leases.

“Further value is found in the north-facing office spaces, which boast excellent natural light and lake views,” said Slade.

Keenan said buyers would have an opportunity to add significantly to the rental income by filling vacant office and ground-floor retail tenancies, or to move their business to an iconic CBD address as owner-occupiers.

“New owners could also explore other options to add value by refurbishing and upgrading the building, and potentially repurposing it for visitor or residential accommodation in one of New Zealand’s top visitor destinations,” said Keenan.

King said the property sat in the heart of the City Centre 1 zone under Rotorua’s district plan.

“This zoning supports the area around Tutanekai Street as Rotorua’s commercial heart. It promotes a lively and enjoyable built environment with a diversity of small shop frontages, plenty of signage and good lighting.

“The proliferation of restaurants, bars, shops, offices and hotels make this a hive of activity and busy pedestrian traffic.

“Business and investment in Rotorua generally are underpinned by solid population growth and economic development in a central North Island location easily accessible to major population centres,” King said.

Rotorua’s population has grown by 20 percent since the 2013 census to an estimated 58,800 in June 2024, according to Statistics New Zealand.

International tourist spending in the city grew eight percent and domestic tourism spending 1.5 percent in the year to December 2024. Economic development agency RotoruaNZ aims to grow combined annual card spending by domestic and international visitors to at least $490 million, being 15 percent above pre-Covid levels, by 2026/27.