Owner selling but staying on

By Colin Taylor

The Carters outlet in Kerikeri will give its new owner $310,000 a year in rent.
The Carters outlet in Kerikeri will give its new owner $310,000 a year in rent.

Kerikeri's newest building supply yard, the Carters outlet on the corner of State Highway 10 and Kahikatearoa Lane, is up for sale with a new 10-year lease in place.

The Bay of Islands property, which is producing net annual rental income of $310,000 with two yearly rent reviews, has modern, low maintenance showroom/warehouse premises on the outskirts of Kerikeri, built in 2006 for ITM.

Carters moved into the new premises after it bought ITM.

The sale is being handled by Stuart Bode of Bayleys Auckland and Chester Rendell of Bayleys Kerikeri.

The property will be auctioned in Bayleys Auckland auction rooms on August 1, unless sold before then.

Bode says Carter Holt Harvey, one of New Zealand's largest companies, has reinforced its confidence in the future of its Kerikeri building supplies business by exercising a right of renewal for a further 10-year period, expiring in October 2022.

The company also has two three-year rights of renewal over the property which could extend the lease expiry date as far as 2028.

Bode says the property encompasses a 7303sq m freehold corner site in two titles and has prominent exposure to substantial volumes of traffic along State Highway 10.

It is in Waipapa, a recently developed bulk retail precinct with other national tenants, including The Warehouse, Noel Leeming, Dick Smith Electronics, Farm Lands and RD1.

The property has access from Kahikatearoa Lane and Klinac Lane at the rear.

There is on-site parking for 44 cars and the building is positioned so trucks can manoeuvre around the full outside area of the premises, which are enclosed by a security fence.

The 4500sq m yard is concreted and well-maintained, says Bode.

Buildings comprise 945sq m of warehousing, with a 220sq m canopy on the western end of the building and a 320sq m verandah.

There is also 530sq m of showroom and office space plus other storage and mezzanine areas giving a total net lettable area of 2467sq m.

Bayleys' Kerikeri manager, Chester Rendell, says the property is one of the best investments to come onto the Northland market.

"People who own good investment property with national tenants like Carters and a long term lease in place are very loath to let them go, especially in the current low interest rate environment."

Rendell said Kerikeri was the fastest-growing area in Northland.

- NZ Herald

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