Investors wanting a secure, long-term lease with one of New Zealand’s most recognisable retail and trade brands, in a solid industrial location need look no further than 494A Rosebank Road, Avondale, Auckland.
The freehold property marketed by Colliers International’s Jason Seymour, John Green and Greg Goldfinch is for sale by private deadline treaty with offers closing 4pm on Wednesday 10 December, unless sold prior.
“Bunnings New Zealand is the anchor tenant of this property. It has a long term lease on the warehouse which sits on just over half of the total 15,925 sq m site.,” says Seymour, “the balance of which is surplus land which could potentially become two separate development sites adding extra appeal for add value investors .”
“Nearly 8000 sq m of the land is operating as a Bunnings Trade Centre and this comes with a brand new 10 year lease with three rights of renewal of eight years.”
It is currently generating net rental of $488,000 pa with built-in 2.5% annual growth and market reviews with cap and collar provisions on renewal.
“This combination of a proven, committed tenant and an occupancy potentially spanning the next three decades offers investors exceptional security,” says Seymour.
Bunnings is Australasia’s leading home improvement and outdoor living retailer and also a major trade supplier. It is wholly owned by Wesfarmers – one of Australasia’s largest listed companies which owns other high profile brands like Coles, Target and K-Mart.
The Bunnings Trade Centre includes a 2941 sq m warehouse with 738 sq m of canopy and a 4302 sq m yard area. The warehouse is being extensively refurbished and upgraded to include new roller shutter doors and a full colour steel canopy. This upgrade work will be complete and the business will be trading by the end of November 2104
“This Bunning’s development is predominantly trade specific, but it forms an essential part of Bunning’s rapidly expanding retail and trade network in New Zealand,” says Seymour.
“Over and above the length of the lease, this is a quality, adaptable building suited to a wide range of occupiers which future proofs the property’s potential,” says Seymour.
The single title includes two undeveloped areas – 2266 sq m and 2655 sq m – right beside the Bunning’s lease area for future subdivision.
“Having two land parcels like this in an industrial area with exceptionally high growth demand, offers investors a significant add value proposition’” says Goldfinch .
“Auckland’s current industrial vacancy rate is less than 3%. So this property represents genuine opportunity and security for investors looking to develop supply in this sector of the market.”
The property is currently zoned Business Five. Under the Proposed Auckland Unitary Plan it will sit within the Light Industry zoning allowing for manufacturing, production, logistics, storage and distribution activities.
Rosebank Road is only 13 km west of Auckland’s CBD, and it anchors a well-established commercial and manufacturing precinct. The Bunnings Trade Centre is a new outlet in the Bunnings network which has been specifically developed to service the rapidly expanding trade business and demand growth in Auckland’s western suburbs
Bunnings Trade Centres complement the larger Bunnings Warehouse stores, and are located in targeted areas most convenient and accessible to trade customers.
Rosebank Road – with a designated motorway on ramp - forms a main arterial from Auckland’s north western motorway to major western suburbs. Avondale, Waterview, New Lynn and Kelston are experiencing significant population increases, and are recognised key growth centres for the Auckland region.
“The accessibility of these locations will be even better once the new Waterview connection linking the north western motorway and the southern motorway via State Highway 20 is complete,” says Green.
“The New Lynn town centre just to the south is undergoing major transformation as a centre for commercial, residential, transport infrastructure and amenity improvements in the Auckland region - and Avondale is a well-established commercial and residential suburb.”