A brand-new, purpose-built retail premises with a long lease to Bunnings Warehouse has gone up for sale in a fast-growing northern coastal town.
The standalone property sits prominently within Mangawhai Central, a large-scale integrated development bringing together retail, hospitality and residential activities, just north of the Auckland regional boundary in Mangawhai.
With an eight-year lease term and an annual rental income of $446,900, the offering is expected to attract keen interest from investors seeking a prime defensive commercial property investment.
The property is being marketed for sale through Bayleys in the North Commercial and Industrial and Bayleys Auckland Central. The sale will be by tender closing on Wednesday, 4 May 2022, unless the property is sold earlier.
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“A key drawcard is the sheer calibre of the tenant,” said Bayleys in the North commercial salesperson Henry Napier.
“ASX-listed subsidiary Bunnings is a major force in the home-improvement sector.
“The non-discretionary nature of the sector places it among the most resilient of all investment classes, with low volatility and strong sales figures through changing economic cycles,” said Napier.
The Bunnings premises at Lot 9, Service Zone, Mangawhai Central, is currently under construction and due for completion later this year.
Designed by award-winning Australasian architect the Buchan Group, the Bunnings premises consists of a large-format retail outlet of some 5,418 square metres on more than 1.5 hectares of freehold land with 154 car parks. The building incorporates a retail area, outdoor nursery, canopy goods area, timber trade and building materials yards, plus office and amenities.
The tenant, Bunnings New Zealand, is a subsidiary of ASX-listed Wesfarmers, whose diverse bulk-retail businesses also include Kmart, Officeworks and Target. Bunnings operates 278 warehouses across Australia and New Zealand.
It will pay semi-gross annual rent of $446,900 for its Mangawhai outlet, on an eight-year lease running through to 2030 with eight further six-year rights of renewal with a final expiry in 2078.
Bayleys in the North commercial salesperson Chris Blair said the outlet would benefit from its strategic position at the entry of Mangawhai Central with high profile to the town’s main thoroughfare, Molesworth Drive.
Mangawhai Central is set to connect Mangawhai’s two existing commercial centres, Mangawhai Heads and Village by creating a master-planned main street retail and food and beverage hub in addition to an industrial park, retirement village, and residential housing across the 130-hectare site.
“Plans for the residential portion of the Mangawhai Central development are also progressing. This will add a large number of homes that will accommodate population growth and add significantly to the immediate retail business catchment,” said Bayleys’ national director commercial and industrial Ryan Johnson.
- Article supplied by Bayleys
