New Farmers Whanganui has 25-year lease

3:00 PM Friday October 27, 2017 True Commercial

The Farmers store complex for sale at 85-97 Victoria Ave and 74-96 Saint Hill St is identified by a blue border. Photo / Supplied

A newly-built Farmers department store in central Whanganui is for sale with a 25-year lease.

Colliers International directors Blair Peterken, Gareth Fraser and Phil Nevill are marketing the property at 85-97 Victoria Ave and 74-96 Saint Hill St for sale by deadline private treaty, closing November 15, unless it’s sold earlier by negotiation.

Peterken says the 7530sq m freehold property has three frontages, providing excellent exposure to the main Whanganui retail strip of Victoria Ave.

Built in 2015, the standalone department store spans 5660.5sq m over two levels, he says.

“A popular Stevens kitchen and homewares store is located within Farmers, while the remainder of the property comprises 1170sq m of additional retail space.

“A 71-space public car park is on site, in addition to metred street parking in the area.”

Peterken says along with the strong tenant covenant, the property has a solid passing income of $1,123,544 per annum.

“The lease to anchor tenant Farmers has 22 years remaining, with the potential for rental growth from the first annual review in 2020,” he says.

“The property also has a new 12-year lease to Whanganui’s oldest eatery, the 62-year-old Cactus Creme Cafe, which reopened this month in a 185sq m unit fronting Victoria Avenue. An additional 985sq m of vacant retail space is also available for lease.”

Once fully leased, the property is projected to earn an estimated $1,457,798pa.

Peterken says the long-term lease makes this a low-risk growth investment.

“There’s everything in this investment — great tenant covenant, scope for rental growth and long-term security of occupation.”

Fraser says Farmers backs on to the northern side of Saint Hill St — a popular vehicular bypass of Victoria Ave, which it runs parallel to.

The site has some 50m of frontage to Victoria Ave, 67m to Maria Place and 96m to Saint Hill St.

“Located in the block between Maria Place and Ridgeway St, the property is well positioned between the Cooks Gardens sporting stadium and Whanganui’s main retail strip,” Fraser says.

“Nearby retailers include The Warehouse, Rebel Sports, Countdown, Whitcoulls, Hallensteins, Cotton On and Stirling Sports.”

Nevill says the building is seismically sound, having been constructed to 100 per cent of the new building standards.

“The structural walls are of pre-cast concrete or masonry, with structural frames of either reinforced concrete or steel,” he says.

“On the exterior, the building is finished with a variety of claddings, curtain wall glazing, automatic glass doors, and a Colorsteel G2 roof.

“Inside, the building features gib-lined painted walls, 3.3m-high suspended tile ceilings, and T5 lamps.”

Nevill says Farmers has been a Kiwi institution for more than a century.

First established in 1909 as Laidlaw Leeds, in Auckland’s Fort Street, Farmers has since expanded to become New Zealand’s most established department store, with more than 50 stores nationwide, he says.

The Farmers Trading Company is now part of the New Zealand-owned James Pascoe Group, which operates some of the country’s best-known retailers including Pascoes, Stewart Dawsons, Stevens and Whitcoulls.