Freehold retail unit in Redwood Centre going up for auction
A Bin Inn store is the latest freehold, individually titled retail outlet to be placed on the market for sale in a continuing sell-down of commercial units within Rotorua's popular Redwood Centre retail and healthcare hub.
"From an investment perspective the sites within the Redwood centre really do tick all the boxes," said Mark Rendell of Bayleys Rotorua who is marketing the Bin Inn unit at 5/11A Tarawera Rd for sale by auction on Thursday, July 31.
The single-storey Bin Inn retail site is featured in Bayleys' latest Total Property portfolio and is within the 4500sq m Redwood Centre located about 3km east of Rotorua's central business district.
"Units within the centre have been shown to deliver excellent rental yields well in excess of some of the more dated commercial investments around the city," said Rendell.
The centre opened in February last year with 19 tenancies signing up to be part of the hub.
Since its opening every unit within the Redwood Centre that has been put on the market has been snapped up by either Rotorua-based investors or several retail business owner/operators within the precinct.
Among the tenancies which have been sold are: Burger Fuel, the Anytime Fitness gym, Domino's pizza, the pharmacy and physiotherapy practice, Couplands butchery and Mt Tarawera Fruit and Vege.
Bin Inn, which specialises in quality wholefoods and speciality grocery items, occupies 220sq m on a corner site and is leased until 2021 with two further six-year rights of renewal taking the potential lease term out to 2033. The property generates $48,000 of income per annum with regular reviews scheduled over the length of the tenancy.
Rendell said the continuing process of "drip feeding" Redwood units on to the market was part of the developer's business model. The strategy encompassed first converting the corner location from a dated and under-utilised site into a slick, fully tenanted retail draw card straddling Rotorua's central business district on one side, and the leisure-focused Rotorua Lakes district on the other.
"The sale of all the tenancies within the Redwood Centre to date reflects the sustainability and attraction of its location, the quality of build, and the spread of tenants occupying the development," said Rendell. "And there is every indication that the trend of strong investor support for the centre will continue with the Bin Inn property."
He said the commitment to a new, long-term lease by the tenant had underpinned the attraction of the property from a pure investment perspective.
Bin Inn is a 100 per cent New Zealand owned and operated retail brand having 35 stores - stretching from Kerikeri in the north to Invercargill in the south. The store sells wholefoods, fruits, grains and speciality produce discounting products through a bulk packaging model.
Redwood Centre, which operates under a body corporate management structure, has communal parking for 205 vehicles optimising shared usage periods throughout the day and into the evening.
All buildings in the development are constructed of tilt slab concrete with longrun steel roofing. The Bin Inn property has certification for 100 per cent of New Building Standards.
What's on offer?
• The property: 220sq m corner retail unit
• Location: In Rotorua's Redwood shopping centre
• Tenant: Bin Inn wholesale foods and speciality groceries
• Agency: Bayleys Rotorua
• Sales method: By auction on Thursday, July 31.
• Features: Freehold 220sq m corner site.
• In popular urban shopping centre.
• Established national brand tenant.
• $48,000 rental income per annum.
• Prior offerings in centre snapped up.