Ready to rev-up investor appeal

5:00 AM Wednesday March 15, 2017 True Commercial

Supercheap Auto is on main arterial route into the Gisborne central business district. Photo / Supplied

The land and buildings housing one of Gisborne’s largest automotive parts and tools retailers are for sale.

The city’s branch of Australian retailer Supercheap Auto, at 412 Gladstone Rd, is a 670sq m single-storey premises, sitting on a share of about 3590sq m of land.

Gladstone Rd is Gisborne’s main arterial route into the central business district. The commercial-zoned Supercheap Auto location shares its presence with neighbouring Liquorland.

Immediately adjacent along the Gladstone Rd strip are other big-brand retailers such as Repco, Countdown, Avanti Plus, Hirepool and Caltex.

The auto shop’s standalone concrete building was purpose-built for the company in 2005 and features parking for 16 vehicles. Supercheap Auto has signed a new six-year-lease through until 2023 — generating an annual net income of $122,569, with the tenant paying all outgoings including council rates, insurance and water charges.

Supercheap Auto has 41 stores operating across New Zealand in every provincial city. The Australian parent company, Super Retail Group, is listed on the Australian stock exchange and operates 300 retail sites across the Tasman.

Super Retail Group operates such sister retail brands as Amart Sports, Avanti Fitness, BCF Boating Camping Fishing, Goldcross Cycles, Rays, Rebel, and Workout World — generating annualised turnover in excess of AU$2 billion ($2.18b).

The land and rectangular-shaped building at 412 Gladstone will sell at auction on April 12. They are being jointly marketed in Auckland, by Bayleys Gisborne and Bayleys Hawke’s Bay. The property features in Bayleys’ latest Total Property portfolio out now.

Salesperson Paul Garland says the Supercheap Auto building is constructed with pre-cast concrete panelling supported by steel portal framing. This delivers a new build standard of 100 per cent, equivalent to an A-grade classification under the initial evaluation procedure (IEP).

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The automotive parts and tools retailers has a new six-year-lease through until 2023. Photo / Supplied

“With 23m of street frontage on to Gladstone Rd, the location delivers a business profile sought by any high-volume retail brand, and was one of the primary reasons Supercheap Auto was quick to initiate a presence on this route into and out of town,” Garland says.

“Since the mid-2000s, other mid-size retail operations have subsequently shimmied outward from the city’s central business district to the Gladstone spine — where per square metre rates for premises are more attractive.

“Gisborne is somewhat different in this perspective to many other provincial New Zealand cities — where big-box and large floorplate retail operations have moved well out into the suburbs as destination shopping clusters. As it’s a relatively compact city however, Gisborne residents have few qualms travelling across town to retail destinations.

“In addition to on-site car parking spaces at the front of the premises, there are good on-street parking options in both Gladstone Rd, and Disraeli St to the rear of the property.”

Garland says a regular asset maintenance schedule had kept the Gladstone Rd property at a high standard of performance for its relatively short life — enabling rental returns to be kept at an optimum level. “With a tenant whose parent company is listed on the Australian stock exchange, sustained by an attractive long-term lease contract in place, we are forecasting that the property will most likely appeal to the investment sector.”

The land and buildings have a Gisborne District Council rating valuation of $655,000 — comprising $360,000 for the building and $295,000 for the land.

Supercheap Auto Gisborne’s interior fit-out is indicative of the brand’s tried-and-true “supermarket” style layout — with wide aisles separated by head-high long-run central display units.