Te Rapa furniture store up for auction
The property at 7 Maui St, Hamilton, is occupied by PK Furniture.
PK Furniture, a substantial retail property surrounded by other bulk retail premises at Te Rapa, Hamilton, is for sale.
Close to “The Base” — one of New Zealand’s largest shopping centres — it offers rental growth well ahead of the current rate of inflation, says Andrew Shaw of Bayleys Waikato. Shaw is marketing the property, at 7 Maui St, with colleague Jason Kong.
The 1440sq m store occupied by PK Furniture, is located on a 4262sq m site. It will go up for auction in Bayleys’ central Hamilton premises on August 4, unless sold earlier by negotiation. Producing net annual rental income of $258,868 plus GST, the property is featured in Bayleys’ latest Total Property portfolio.
“A particularly attractive feature is the lease’s fixed rental increases of 3.5 per cent per annum, which means that the property’s income growth is outstripping the current very low rate of inflation by a considerable margin,” says Shaw.
“It’s also in one of Te Rapa’s most popular streets in an area that continues to show considerable residential and commercial growth and has very little vacant commercial space. This is largely due to the fact that The Base shopping mall continues to draw high profile retailers into the area which benefit from the huge volume of shoppers that the massive mall attracts.”
PK Furniture relocated from other premises in Te Rapa into the property last year after the previous occupier Fishing Camping Outdoors (FCO) vacated following the closure of its New Zealand wide business. PK Furniture has taken over the balance of FCO’s eight-year lease which runs until November 2019 and has two eight-year rights of renewal.
“PK Furniture decided to make the move because the premises offered a better location amongst other complementary bulk retailers,” says Shaw.
Established in 2010, PK Furniture has expanded beyond its original Auckland base in recent years to also open premises in Whangarei, Tauranga, Hamilton, Hastings, New Plymouth, Palmerston North and Porirua. It now has 18 stores in the North Island.
The building for sale was completed in 2004 and is part of a complex of five bulk retail outlets. It has a reinforced concrete floor, steel portal frame with tilt panel concrete walls and colour steel roof. There are 66 car parks located at the front of the property.
Unlike many retail outlets in these type of complexes, it sits on its own freehold title and is not part of a body corporate. Kong says with a site coverage currently of only 33 per cent, there could be potential to expand the existing premises or possibly erect another retail outlet on the site, subject to further investigation and obtaining the necessary consents.
Other neighbouring bulk retail tenants include Bedpost, Big Save Furniture, Beds R Us, Super Cheap Auto, Danske Mobler, Kitchen Things, Repco and Early Settler Furniture.