Happy tenant: Patagonia Chocolates’ Saori Yukitomo says the airport site is getting busier all the time
Queenstown Airport’s annual rental income now puts it among the resort’s commercial property high-fliers.
Airport rents rose 17 per cent to $4,659,371, according to its latest financials for the June 30 year.
At 30 cents of every dollar received, rent is Queenstown Airport’s second-largest revenue stream after landing fees.
This multi-million rent roll is thought to put the airport in the same major league as large commercial landlords such as Remarkables Park developer Porter Group and Skyline Enterprises with its CBD portfolio.
The airport is majority-owned by Queenstown Lakes District Council with 75.1 per cent.
The airport board – now largely replaced – secretly and controversially sold the other 24.99 per cent to Auckland International Airport last year.
Airport revenue streams
Landing fees $6.93M
Rental income $4.66M
Departure levies $1.58M
Carparking fees $1.41M
Other revenue $1.04M
Total revenue $15.6M
(To June 30, 2011)
Outgoing airport boss Steve Sanderson, leaving in the New Year to run Wellington Airport, says in his annual report on the financial year that its retail tenancies are fully leased.
“Demand for retail space is strong,” Sanderson noted.
Sanderson followed this by flagging yet another terminal extension, to include additional retail space.
“The demand from rental car companies is also very strong ...and we are working to develop new areas,” Sanderson reports.
Subsequent to those comments, rental car giant Hertz announced last month that it will develop a new building and a 130-car depot on a 5500sq m site at the airport before next winter.
All told, Queenstown Airport has 48 tenants, its corporate boss Karen Castiglione says.
As well as the four airlines serving Queenstown, other tenants include eight retailers, three food and beverage outlets, 10 rental car operators, nine flightseeing firms, and several ground-lease tenants such as the Wakatipu Aero Club and flight caterer LSG Sky Chefs.
Government agencies are among the airport tenants – Aviation Security Service, New Zealand Police, NZ Customs Service and Biosecurity NZ.
State-owned enterprise Airways also pays the airport ground rent for its control tower.
Two prominent airport retail tenants spoken to by Mountain Scene are very happy campers.
Five-year tenant Mike Pardekooper of Paper Plus says his turnover is climbing faster than passenger numbers.
“We’re more than happy with what’s happening at the airport, it’s a pleasure to be there,” Pardekooper says.
After more than two years, Lorena Giallonardo of Patagonia Chocolates also says her increasing turnover almost matches passenger growth.
Asked if she’s paying proportionately more for her prime terminal space, Giallonardo reveals her rent is based on turnover.
“So if we are selling more, we are paying more [rent] too,” she says.
Patagonia staffer Saori Yukitomo, working at the airport-based cafe and gourmet chocolate shop since it opened in June, 2009, says business is growing constantly.
“Compared to last year, we’re definitely busier – there’s a lot more flights, a lot more people.”
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