Thames DIY store is a stable tenant
The Mitre 10 store occupies one of the biggest commercial properties in Thames. Photo / Supplied
One of the biggest commercial properties in the Coromandel town of Thames, leased to building supplies and garden equipment retailer Mitre 10, is for sale by auction.
The 2836sq m site at 458 Pollen St and 204-206 Sealey St is leased under multiple individual leasing terms. Two leases run through to 2019 while two longer leases run through to 2021. All leases have rights of renewal clauses — varying from two and six years — along with regular rental reviews linked to the Consumer Price Index (CPI).
The property comprises 1659sq m of buildings and faces directly onto the Coromandel town’s main street but with substantial land and buildings at the rear of the site, off Mackay St.
Mitre 10’s retail division occupies most of the Pollen St store, flowing through to the brand’s outdoor garden centre and warehousing facility at the rear, with three leases generating total annual income of $127,500.
Computer technology sales and service firm Home IT Solutions leases the floor above Mitre 10, paying $19,500 in annual rental.
Home IT shares the upstairs with Mitre 10’s administrative offices and staff amenities such as bathrooms and kitchen area.
The freehold land and buildings are being jointly marketed for sale at auction on May 18 through Bayleys Hamilton and Bayleys Whitianga and are featured in Bayleys’ latest Total Property portfolio magazine.
“The configuration of this property is perfect for the wider Mitre 10 brand,” says Bayleys Hamilton commercial salesperson Josh Smith.
“While the retail shop frontage of Mitre 10 is on Pollen St, the property is also accessible from Mackay St at the rear. This allows for bulkier Mitre 10 consumer purchases to be collected from a dedicated yard, along with a similar level of service through the ‘tradies’ depot.
“The yard allows for hassle-free product collection as customers don’t have to park on the street while they are loading their purchases. This is particularly important for the large volume of trailers, vans, utes, and small tonnage vehicles which are transacting with Mitre 10 on a daily basis.”
The Pollen St-fronting building has recently undergone earthquake strengthening to bring it to more than 67 per cent of new building standards, while the single storey building at the rear has an initial evaluation process rating of 100 per cent.
Mitre 10 has been operating in New Zealand since 1974 and now has 81 stores nationwide, recording sales of $1.24 billion in the 2015/16 financial year — up 9.4 per cent on the previous year.
As New Zealand’s largest home improvement and garden retailer, The Kiwi-owned and operated chain supplies both the building and landscaping trade, and DIY shoppers.
Smith says all buildings within the offering have steel framed portals with a mix of brick and iron supports, and corrugated roofing. He says all structures had been maintained to high standard.
He says the Mitre 10 tenancy is reflective of many small New Zealand rural service towns.
“In the cities many of the ‘big box’ operators have moved to suburban locations where the per square metre costs are lower. Thames has managed to retain Mitre 10’s presence in its CBD,” he says.
“The ample availability of parking in the main street, little traffic congestion, and the sense of being able to park and do shopping from one pivotal point are elements which enable towns like Thames to retain their rural character and appeal.
“Neighbouring commercial tenancies in Pollen St include banks, accountants and solicitors, cafes, and the full gamut of retail outlets. There’s very little need for locals to head out of town to fulfill their day-to-day shopping.”