Strategic investment in fast-growing suburb of Hamilton South
Bunnings Warehouse Hamilton South, located in the fast-growing suburb of Hamilton South, is being offered for sale as a long-term investment.
Colliers International has been exclusively appointed to market the site at 13A Quentin Drive for sale by international tender closing at 3pm on 7 December.
Completed in 2016, the high-profile property offers a net lettable area of 11,645sq m on a large 3.1ha site adjacent to State Highway 1.
Colliers International Capital Markets directors Blair Peterken and Jason Seymour, who are marketing the property with Hamilton Director Alan Pracy, say it is a highly attractive investment with excellent fundamentals.
“This exceptional property boasts strong tenant covenant, a new long-term lease, fixed annual rental growth and a prominent location in one of Hamilton’s fastest-growing areas,” Peterken says.
“It is fully leased for 12 years to Bunnings Limited, a wholly owned subsidiary of ASX-listed company Wesfarmers and one of New Zealand’s recognisable retail and trade brands.
“With new construction and a prime corner site to the south of Hamilton CBD, this property is well positioned for growth.”
Peterken says the property, on three freehold titles, was built and developed by Bunnings, whose property strategy is to acquire and develop high-profile, strategic sites in growth locations.
“The brand-new lease, which commences from settlement, has eight rights of renewal of six years each.
“The lease has an initial rent of $1.352 million a year, with fixed rental growth locked in at 2.5 per cent a year.”
Seymour says Hamilton is a key part of the ‘Golden Triangle’ of Auckland, Hamilton and Tauranga, making it an attractive investment option.
“With prime commercial property in Auckland remaining tightly held, we’re seeing increased interest in assets in North Island growth areas such as Hamilton.”
Hamilton is the largest centre in the growing Waikato region, and is experiencing strong growth as a result of New Zealand’s economic success.
“Construction of the Waikato Expressway, due to be completed in late 2020, is expected to cut travel times to Auckland significantly, making Hamilton much more accessible to New Zealand’s largest commercial centre.”
Seymour says the property benefits from 100m of road frontage to Kahikatea Drive (SH1), offering excellent exposure to more than 20,000 passing cars a day.
“The building is oriented toward the eastern boundary of the site, allowing for a large, easily accessible car parking area for 267 cars at the front of the property.
“The main vehicle access for customers and a separate delivery entrance are both located on Quentin Drive.”
Internally, the building commands a total of 11,645sq m and incorporates a large 1,796sq m garden centre at the southern end of the property, fronting SH1.
To the north is the 5,187sq m main warehouse, a 2,224sq m timber trade sales area, and a 1,939sq m timber trade yard.
Amenities and a mezzanine office area are situated between the main warehouse area and the garden centre.
Pracy says the readily accessible property is within 10 minutes of many of Hamilton’s main residential areas.
“It is well positioned only 2.5km from Hamilton CBD and 1km from the major intersection of SH1 and SH3, which provides quick access to Glenview, Hillcrest, Hamilton East and Dinsdale, as well as the CBD.
“The property is also superbly located within the closest significant commercial precinct to the 740ha Peacocke growth cell – an area potentially subject to a government housing fund grant that will provide an additional 8,000 homes over the next 30 years.”
Pracy says the Kahikatea Drive area is a prime location for trade retail, convenience and industrial service activities.
“Nearby neighbours include the Gallagher Group head office, a new Z service station and retail centre, Landpower, Hill Laboratories, McDonald’s and a number of other high-profile users.”
The property is zoned Industrial under the Hamilton City Council Operative District Plan, which allows for retail of more than 1,000sq m in ground floor area.
As at October 2017 Bunnings was operating 249 warehouses, 73 smaller format stores, 33 trade centres and three frame and truss centres across Australia and New Zealand.
Originally founded 128 years ago in Western Australia, Bunnings has experienced significant success and growth.
The company now employs more than 40,000 people throughout Australasia.
Peterken says Bunnings’ strategy of growth through its organic store rollout programme has seen it become one of Australasia’s leading home improvement and outdoor living retailer and also a major trade supplier.
“This provides a proven management structure and foundation for the brand to grow, as well as stability for individual assets. Investment opportunities of this quality are highly sought after but rarely become available in New Zealand.”
Peterken says he expects strong interest in the property from both national and overseas investors.
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