A newly completed Bunnings Warehouse at 272-302 Great North Rd, Grey Lynn, is on the market.
Encircled by some of the country's wealthiest suburbs, the 7207sq m site is one of the biggest private landholdings in Auckland's city fringe. Bunnings will take a new 12-year lease with eight six-year rights of renewal when a sale is settled.
Only 2km from the Auckland CBD and sitting on Great North Rd, the property is one of the highest profile locations in Auckland's inner-city suburbs.
Whillans Realty Group, which is marketing the property by international tender closing on May 25, says the Bunnings Warehouse store has strong income characteristics, while also providing substantial underlying land value with flexible zoning.
Group managing director Bruce Whillans, who is selling the property with colleague Henry Thompson, says investment opportunities of this calibre are highly sought after and seldom become available in New Zealand. Backed by a quality tenant such as Bunnings it is expected to attract significant buyer interest both nationally and internationally.
Whillans says Bunnings developed the site and the store is due to open in May.
"They chose this site because of its prominent corner position and frontage to Great North Road, which is a major arterial route connecting Auckland's inner west suburbs with the CBD."
"Bunnings investments always generate significant interest for a number of reasons. The net lease structure and fixed rental increases are favourable; along with the strength of the fundamental real estate given the strategic site selection from Bunnings," says Whillans.
The new centre has been constructed using a steel portal frame, precast concrete walls and reinforced concrete floors to provide a building area of about 8872sq m, including main retail, nursery and a large area dedicated to trade customers.
There are two levels of car parking with 212 bays connected by two sets of travellators and lifts to the main retail and trade areas.
Holding three road frontages with about 120m to Great North Rd, 62m to King St and 94 metres to Dean St, the property has a commanding position and a high profile in Grey Lynn, one of Auckland's wealthiest inner-city suburbs with a rapidly growing catchment.
The surrounding suburbs are undergoing substantial development and intensification because of the city's strong population growth.
Demand for closeness to the CBD by both homeowners and businesses is pushing land values higher.
Auckland Transport surveys show more than 20,000 cars pass the property every day.
Five of Auckland's 10 most affluent residential suburbs are within a 3km radius of Bunnings Grey Lynn.
Over the past two years, about 300 apartments have been built within a 1km radius of the property, with a further 500 units under construction.
Within 600 metres, a new Countdown supermarket has opened at Vinegar Lane in Ponsonby within a substantial mixed-use development and, even closer, a new purpose-built Aston Martin and Bentley showroom is due to open.
"Investors can take comfort in the proven performance of Auckland's land market and the underlying security this provides," says Whillans.
Last year the home improvement and outdoor living retailer had revenue of over NZ$11.5 billion across Australia and New Zealand. Total sales growth was up 10.9 per cent and return on capital was at 36.6 per cent.