Bunnings Takanini for sale with new long-term lease
The Bunnings Warehouse which is for sale at 167-173 Great South Rd, Takanini
The property housing Bunnings Warehouse Takanini, which is generating total annual rental income of $1,388,000 plus GST from a new 12-year lease, is for sale offering a new owner built-in annual rental growth of 2.5 per cent.
Located on a 1.7ha corner site at 167-173 Great South Rd, the freehold property comprises a 10,433sq large format retail complex.
Dave Stanley of Bayleys South Auckland and James Chan of Bayleys’ International Division are marketing the property by international tender, closing October 6 unless it sells earlier by negotiation.
“The combination of a high-quality, modern building located within one of Auckland’s fastest growing areas and occupied under a long-term lease with guaranteed rental growth, make this a compelling investment opportunity,” says Stanley.
He says Bunnings developed the site and opened the store in December 2013. “They chose this site because of its prominent corner position and road frontage to both the main arterial Great South Rd and to Graham St, which gives the store huge exposure and profile. It is also close to many other national and international retailers.”
Chan says the store follows Bunnings’ well proven format and layout with a full trade and retail offering and expansive high stud design, a separate garden centre, café and children’s play area. There is also extensive open air parking directly outside the store as well as underground parking for a total of close to 230 vehicles.
Jacqui Coombes, general manager New Zealand, says the sale forms part of Bunnings’ long-term strategic approach of releasing capital on lease terms which provide flexibility from a long-term operational perspective. “It also provides investors with exposure to high quality retail properties backed by the strength of Bunnings’ covenant,” Coombes says.
The new 12-year lease with eight six-year rights of renewal has the potential to take Bunnings occupation of the property through until 2076 and the annual 2.5 per cent increases commence on the first anniversary of the lease commencement and subsequent renewal dates.
Stanley says the area immediately surrounding Bunnings’ Takanini site has developed into a significant retail precinct occupied by a large number of national and international brands. Nearby neighbours include Countdown, Pak‘nSave, The Warehouse and a host of smaller retail and convenience stores many of which are located within the Southgate Shopping Centre and Takanini Village.
“Shoppers are drawn from an extensive geographical area due to it being the closest commercial centre of note for the eastern rural hinterland of Papakura and Takanini, including Ardmore. The potential of the region has attracted the best retail, service, food and beverage providers that cater for the growing needs of the surrounding community. The strong retail mix of the area will be further strengthened with the development of the planned second stage of Takanini Village.”
Stanley says Takanini is one of Auckland’s fastest growing suburbs of and has experienced significant expansion in the last five to 10 years. “That growth is set to continue with Statistics New Zealand projecting the population base of nearly 51,000 in 2015 to increase to nearly 81,000 by 2043 representing a net growth of around 30,000 people - up 59 per cent.
“The Auckland Unitary Plan identifies 469ha of future urban land in Takanini alone, which will accommodate up to an estimated 4500 new dwellings.”
James Chan (left) and Dave Stanley (right) of Bayleys.