Purpose-built, large format retail and trade store on a substantial site
Pent-up demand for quality investments in Otago and Southland’s commercial property market will likely generate strong interest in the opportunity to purchase PlaceMakers’ premises in Gore.
The purpose-built, large-format retail and trade store occupies a substantial 3,813sq m site on five titles adjoining Gore’s town centre – the second-largest town in the Southland region.
The property boasts strong investment fundamentals including a high-profile location and a well-established, listed national tenant that has been operating from this location since the 1980s.
It is being offered for sale by auction at Colliers International’s Queenstown office at 11am on Thursday 7 March, unless it sells earlier.
Mark Simpson, Director of Colliers Queenstown, says strong interest from both local and national investors is expected at auction.
“Our region’s commercial property market has had limited opportunities of this quality and price range in recent times, making this a great chance to secure a top-notch, bottom-drawer investment.
“The property has a rateable value (as at 2016) of $1,700,000 and was built for PlaceMakers in the 1980s.
“It has since been substantially expanded and strengthened over time to meet both the needs of the tenant and statutory requirements.
“The tenant’s ongoing commitment to the site is backed by a generous lease returning $108,838 plus GST in net annual rent.
“Three-yearly rental reviews are indexed to the lower of CPI or market rent, with the next review due on renewal in October 2021.”
The site, which spans five freehold titles at 10 Fairfield Street and 6 Medway Street, is superbly located in the centre of Gore’s main commercial district.
“The quality mix of surrounding retailers includes The Warehouse, Countdown, Noel Leeming, New World, Regional Ford and Guthrie Bowron to name a few,” Simpson says.
The property comprises a flexibly configured 1,261sq m building providing a 450sq m retail showroom fronting Fairfield Street, plus an adjoining 727sq m warehouse that serves as a bulk trade store, supported by a substantial secure yard with good vehicle and customer access.
The warehouse has a stud height of about 6m, allowing for drive-through truck access from the yard through to Fairfield Street.
It includes about 84sq m of partitioned offices with a mezzanine floor above comprising some 38sq m of storage and a 32sq m office and staffroom.
The fully security-fenced yard of about 2,500sq m sits behind the main building, with frontage to Medway Street offering dual entry and exit access, in addition to the drive-through bulk retail exit.
The building was originally built in 1982, with bulk store and retail additions in 2004.
An initial seismic assessment in 2013 found the building meets 78 per cent of building standards. Additional strengthening works were completed by the current owners in 2015.
Tenant Fletcher Distribution Limited, trading as PlaceMakers, is the retail arm of Fletcher Building Limited.
PlaceMakers is New Zealand’s largest supplier of building materials and hardware, with more than 74,000 product lines and eight manufacturing plants nationwide supplying frames and trusses.
Each of its 61 stores, from Kaitaia to Invercargill, is a joint venture with a local business partner. The company employs more than 2,100 people and serves over 300,000 customers.
Colliers’ Rory O’Donnell comments that the property’s Commercial zoning under the Gore District Council District Plan allows for a wide range of activities.
“These include offices, healthcare, education, visitor accommodation, residential, commercial recreation, and car parking.”
O’Donnell says Gore is a vital part of the Southland economy, as the second-largest town in the region, and is a drawcard for many with its combination of culture and heritage, its rural setting, and its range of modern facilities and amenities.
“The township sits on the Mataura River, with most of its population of some 7,000 residents living on the western side of the river. A further 5,000 people live in the wider district.”
Gore also services the surrounding farming communities, with the nearest major centre being Invercargill 64km to the southwest.
“The property provides a very functional base for the existing tenants, but equally provides flexibility for a future change of use or reconfiguration of the site should the needs arise. This is often hard to find in the regional commercial market,” O’Donnell says.
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