A Bunnings Warehouse for sale in fast-growing Hamilton South is being marketed as a long-term investment property.
"It has a strong tenant covenant, new long-term lease and fixed annual rental growth," says Blair Peterken of Colliers International who, with colleagues Jason Seymour and Alan Pracy, is exclusively selling 13A Quentin Drive by international tender closing December 7.
Completed in 2016, the high-profile property has a net lettable area of 11,645sq m on a large 3.1ha site adjacent to State Highway 1.
"It is fully leased for 12 years to Bunnings Ltd, a wholly owned subsidiary of ASX-listed company Wesfarmers," Peterken says.
"With new construction and a prime corner site to the south of Hamilton CBD, this property is well positioned for growth."
Peterken says the property, on three freehold titles, was built and developed by Bunnings, which has a property strategy of acquiring and developing high-profile, strategic sites in growth locations.
"The new lease, which commences from settlement, has eight rights of renewal of six years each.
"The lease has an initial rent of $1,352,000 a year, with fixed rental growth locked in at 2.5 per cent a year."
Peterken says he expects strong interest in the property from both national and overseas investors.
Seymour says Hamilton is a key part of The Golden Triangle comprising Auckland, Hamilton and Tauranga, making it an attractive investment option.
"With prime commercial property in Auckland remaining tightly held, we're seeing increased interest in assets in North Island growth areas such as Hamilton."
Seymour says Hamilton is experiencing strong growth as a result of New Zealand's economic success.
"Construction of the Waikato Expressway, due to be completed in late 2020, is expected to cut travel times to Auckland significantly, making Hamilton much more accessible."
Seymour says the property benefits from 100m of road frontage to Kahikatea Dr (SH1), offering excellent exposure to more than 20,000 passing cars a day.
"The building is oriented toward the eastern boundary of the site, allowing for a large, easily accessible parking area for 267 cars at the front of the property.
"The main vehicle access for customers and a separate delivery entrance are both located on Quentin Drive."
Internally, the building area totals 11,645sq m and incorporates a large 1796sq m garden centre at the southern end of the property, fronting SH1. To the north is the 5187sq m main warehouse, a 2224sq m timber trade sales area, and a 1939sq m timber trade yard.
Amenities and a mezzanine office area are situated between the main warehouse area and the garden centre.
Pracy says the readily accessible property is within 10 minutes of many of Hamilton's main residential areas.
The property is zoned Industrial under the Hamilton City Council Operative District Plan, which allows for retail of more than 1000sq m in ground floor area.
As at October 2017 Bunnings was operating 249 warehouses, 73 smaller format stores, 33 trade centres and three frame and truss centres across Australia and New Zealand.