Two premium grade freehold sites occupied by national-branded tenants are on the market in Whangārei, presenting an exciting opportunity to invest in one of the country’s fastest-growing regions.
Strategically positioned with a distinguished profile in central Whangārei, 4 and 6 Gumdigger Place can be purchased either individually or combined.
Both locations have prominent tenants, and 6 Gumdigger Place presents a split-risk investment opportunity with two tenants leasing the building.
Colliers has been appointed exclusively to market the properties for sale by deadline private treaty closing at 4pm, Thursday 12 August, unless sold prior.
Number 4 Gumdigger Place is leased by The Tile Depot, returning $106,150 net plus GST per annum with a personal guarantee on the lease.
This property has a land area of 2508sq m and benefits from two noteworthy street frontages with access points from Rewa Rewa Road and Gumdigger Place.
The retail premises measures 965sq m and the current lease expires in May 2023.
The Tile Depot, a proven market leader, is New Zealand’s only tile company to gain Consumer Trust Accreditation.
Number 6 Gumdigger Place, a 1806sq m site, is occupied by Furniture Zone and Kitchen Things and provides a combined net annual rental income of $116,618 plus GST per annum.
Furniture Zone, which has stores throughout the North Island, occupies a 443sq m building with a net annual rental income of $56,010 plus GST per annum.
Their three-year lease is up for renewal next year with a final expiry in November 2025.
Kitchen Things, a family-owned business with 17 locations throughout New Zealand, is the other tenant and recently renewed their four-year lease with two more rights of renewal of four years each.
Kitchen Things occupies a 551sq m showroom, returning a net annual rental income of $60,610 plus GST.
Nigel Ingham, Director of Colliers Whangārei, says the buildings present a range of opportunities.
“These are highly desirable buildings that are well located. Purchasers will recognise the advantageous features of this investment opportunity given their functionality and accessibility,” Ingham says.
“Further, both buildings are potentially under rented providing the potential for future upside.”
Ingham says now is the time to invest in Northland.
“Data from Infometrics tells us that Northland was the country’s second-fastest growing region in the September 2020 quarter with economic activity up 3 per cent,” Ingham says.
“Whangārei is the engine room of Northland’s economy, accounting for half the region’s GDP and these outstanding retail sites with national-branded tenants represent a fantastic opportunity for astute buyers.”
Gumdigger Place runs off Rewa Rewa Road, which connects State Highway 1 with downtown Whangārei.
Daniel Sloper, Broker at Colliers Whangārei, says this area is the central focus of the city’s trade and retail hub.
“With blue chip retailers Bunnings and Harvey Norman nearby, Gumdigger Place represents a premium location for the current tenants who will continue to experience growing foot traffic and potential customers in the area,” Sloper says.
“There are low vacancy rates nationwide for showroom trade retail opportunities meaning investors can buy with confidence.”
Both sites boast modern construction and are zoned Business 2 under the Whangārei District Plan. This zone allows for a business environment covering the business areas on the fringe of the Whangārei Central Business District and includes light industrial areas.
“All of the information points to strong potential for further development in Northland and this area will continue to boom in the coming years,” O’Brien says.
“Prospective buyers should undertake due diligence as soon as possible to avoid disappointment.”