Hammer will wave over Fairy Springs shops
The strip of 10 retail properties at 100 Fairy Springs Rd, Rotorua.
Five retail properties with freshly negotiated leases within a Fairy Springs suburban retail hub of 10 individual tenancies will go under the hammer in Rotorua next month.
Featured in Bayleys’ latest Total Property magazine, the portfolio of properties is being marketed by Mark Rendell of Bayleys Rotorua who is selling the five outlets individually for auction on April 16.
Rendell says the five Fairy Springs units up for sale range in size from 87 sq m to 279 sq m and comprise:
- Skyline Superette – occupying a 279 sq m area generating $50,000 in annual rent from a six year lease, with a six year and three more three-year rights of renewal.
- BurgerFuel – within 120 sq m with a 10 year lease earning $39,000 per annum and rights of renewal of six years and an additional four years.
- Te Arawa Fresh Seafood – leasing a 123 sq m site for six years for $35,670 annually with two further three year rights of renewal.
- Springs Bakery - renting a 130 sq m site for $33,800 per annum on a six year lease with four further four-year rights of renewal.
- Best Sushi – in an 87 sq m site with a six year lease generating $26,100 per annum and two further three-year rights of renewal.
All of the new properties for auction have either a three per cent annual rent increase built-in, or are linked to Consumer Price Index increases giving new owners guaranteed rental growth.
“The location, tilt-slab single storey build-style, and tenancy mix for Fairy Springs is based on a proven formula,” Rendell says. “BurgerFuel, Te Arawa Fresh Seafood and Best Sushi also have outlets at the highly successful Redwood Centre, and saw value in extending their Rotorua presence to this side of town where they wouldn’t be in competition with the existing outlets.
“The buyer appeal comes from having new built premises, constructed to 100 per cent of New Building Standard (NBS) with a diverse range of established tenancies on long leases. It’s close to the perfect buyer check-list.”
The complex, on a high profile 6300 sq m site of the previous Orderings Nursery, was completed in March last year. The short-stay shopping complex has 90 common-share car parks.
Rendell says the Fairy Springs retail hub overlooks State Highway 5 on the main route in and out of Rotorua from Auckland and Tauranga – with a daily average traffic count of 25,000 vehicles underpinning a substantial passing trade.
“With this high passing traffic count sustained by a well-established surrounding resident population we are expecting strong buyer interest from investors in Rotorua and the wider Bay of Plenty.
This Burgerfuel building within the Fairy Springs retail strip is included in the sale.
The tenancy mix within the Fairy Springs hub is anchored by the Fairy Springs Medical Centre and Pharmacy which is acts as a magnet for pulling in adjunct customers throughout the day. The medical centre, however, is not part of the sell-down and is being retained by the vendor TPB Properties.
Fairy Springs itself borders a major residential section of the city with both schooling and the Skyline recreational amenities close by.
Rendell says he expects the Fairy Springs sites to follow in the footsteps of the highly successful sell down of the Redwood Centre developed by the same owner.
Construction company chief Tony Bradley built the Redwood Centre three kilometres east of Rotorua’s central business district in 2013. Over the last two years, Bradley has gradually sold off the 14 retail tenancies within the hub encompassing convenience food outlets, a health and fitness centre, liquor shop, hair salon/beauty parlour and grocery store.
While the Redwood Centre was being sold off, Bradley’s TPB Properties constructed the retail hub at Fairy Springs on a similar model on the other side of city.
Mark Rendell, Bayleys Rotorua.