Cambridge Bunnings will appeal to range of buyers
Aerial view of Bunnings Cambridge which is for sale at 26 Lake St, Cambridge.
The sale of Bunnings Cambridge, south of Hamilton in the Waikato, presents the opportunity for a purchaser to acquire a large quality retail premises leased to a national company brand in a high profile location.
“This is a well presented property with a first class tenant,” says Andrew Shaw, agent for Bayleys Hamilton who, with colleague Mike Swanson, is marketing the property for sale through a tender process closing on February 20.
Shaw says Bunnings Cambridge occupies one freehold site at 26 Lake Street and two leasehold sites on Lake St and Queen St.
“Bunnings has one of the town’s longest running leases generating $298,931 plus GST annually following the deduction of ground rent. Under the existing terms the tenant will commence a new 10 year lease from the sale settlement date with three six-year rights of renewal,” Shaw says.
The building includes offices and amenities, warehouse, nursery and a timber yard with a total land area across the three titles of 6852 sq m which have a combined rating value of $4.22 million.
“The property is located at in one of Cambridge’s most sought-after and thriving locations on the corner of Queen Street which doubles as State Highway One and Lake Street, less than 15 minutes’ drive from Hamilton,” Shaw says.
The Bunnings Cambridge building was purpose built for the tenant in 2009. Since then it has received ongoing upgrades and maintenance and has a seismic assessment rating of 100 per cent compliance with the building code. A large onsite car park accessible from Lake and Queen Streets can accommodate large numbers of vehicles.
“There is a shortage of good quality investment properties for sale in Cambridge in this price bracket so this building will appeal to a large range of potential investors,” Shaw says.
The central location makes up part of the northern precinct on Cambridge’s busy arterial route and it is one of the most visible locations in the area. Neighbours to the site include, Pizza Hut, Subway, McDonalds, Countdown and Mobil.
Bunnings is New Zealand’s leading retailer of home improvement and outdoor living products and a major supplier to project builders, commercial tradespeople and the housing industry, in New Zealand and Australia.
Street level view of Bunnings Cambridge.
The Cambridge property is one of more than 320 warehouses, stores, trade centres and frame and truss centres within the Bunnings network operating across the two countries. Sales revenue across the 2014 financial year totalled AU$8.5 billion (NZ$8.988 billion).
As at June 30, 2014, the group had 36,000 employees within 223 Bunnings warehouses, 64 smaller format stores, 33 trade centres and three frame and truss centres operating across Australia and New Zealand.
The combination of a busy and highly sought-after central location; a long-term tenant serving a thriving New Zealand DIY industry; and good growth within the region makes the properties an attractive investment, Shaw says.
“The property has excellent exposure and is well frequented by shoppers and residents.
Bunnings caters to the ever increasing popularity of DIY with Kiwis, which adds further appeal to potential buyers.”
He says hardware stores continue to report a high growth in customer spending with “recent figures” showing that Kiwis spend on average more than $4 billion a year on hardware, building and garden supplies.
“Additionally, Cambridge is the largest and most affluent town in the Waikato, with a high proportion of residents working in nearby Hamilton. The 15 minute commute will soon become even faster with the new motorway due to be completed soon,” Shaw says.
Cambridge is the biggest rural town in the Waikato region with a population that has grown to 18,700, according to the latest Census figures.
Shaw says the region’s established tourism market continues to flourish, with visitors drawn to the new Avantidrome, a world sporting class facility centered around a purpose built 250 metre wooden cycling velodrome; Lake Karapiro, the Waikato River, a strong equestrian community, excellent cafes and a renowned local farmers’ market.
What’s on offer?
The property: Bunnings Cambridge.
Location: 26 Lake St, Cambridge.
Agency: Bayleys Hamilton.
Sales method: Tenders closing Friday, February 20.
- In Waikato’s most affluent town.
- High profile location.
- National brand name tenant.
- Earns net annual rent of $298,931.
- New 10 year lease from sale settlement
Andrew Shaw of Bayleys Hamilton.
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