Where are Graeme Hart companies moving addresses from and to? A rare sale of a popular Pak’nSave poses the question - why? What reaction to $100 million plans for a new Karangahape Rd mass timber offices? What will the new Devonport ‘dark centre’ look like when Woolworths opens its new
Graeme Hart’s businesses move; why sell a valuable Pak’nSave?; mass timber block backed - Property Insider
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Graeme Hart's superyacht Ulysses in Makkum, Netherlands in October 2023.
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Overarching business Rank Group as well as Rank Services, Fernbrook Residential Services and Fernbrook Investments changed addresses on June 18.
Rank’s registered offices remain on floor nine of the waterfront block 148 Quay St in the CBD so it’s just the company addresses which have changed.
Fernbrook is Hart’s relatively new south Auckland industrial property venture, owned by Rank Group.
Fernbrook’s website says that it has leased space in warehouse, logistics and industrial buildings it developed.
Synlait Milk leased a new twin-building development finished last year, with 1.8ha of internal space at 9 Jerry Green St, Wiri. One warehouse is 11,000sq m with 77 car parks while its neighbour is 7000sq m with 50 car parks. That project, not far from Auckland Airport, was completed last March, the website says. A sub-lease is understood to be in place there.
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Rhenus Logistics leased building one at 90 Pavilion Dr, Airport Oaks, Fernbrook says. Building two at the same address was leased to freight company Mainstream, Fernbrook’s site shows.
Pak’nSave - why sell?
One can’t help noticing the unusual occasion of a prized Pak’nSave supermarket hitting the market.
The $1b NZX listed landlord Investore Property wants to sell its $37m popular big yellow box in New Plymouth, on a prime lot on an extremely long lease via exclusive agency with the Colliers folk.
Why sell? “Recycling capital,” was the answer from Philip Littlewood, chief executive of Stride Investment Management which manages Investore.
Colliers’ information memorandum supplied by agent Blair Peterken showed 53-65 Leach St to be highly attractive, advertising noting supermarket spending was “a non-discretionary/essential service”.
We’ve all got to eat, right?
“Pak’nSave New Plymouth represented a trophy investment located on the golden mile of all major supermarkets and fast-food outlets in that city.”
This landmark 10,633sq m site with dual access, triple road frontage and 320 car parks is fully leased to one of New Zealand’s largest grocery retailers Foodstuffs.
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The property currently returns an annual rental of $1.84m plus GST with annual rental growth fixed at 2 per cent and market reviews five yearly.
“Supermarket assets of this calibre are highly coveted, given the security of a major national tenant and regular rental growth on offer.
The lease has a further 18 years to run, expiring in 2029 but renewal rights for a further 17 years. That could take the rent flow through to September 2046, assuming the right of renewal was exercised.
Phew, quite some cash stream.
A tenant of this financial might is unlikely to default on the rent and the information memorandum indicates that.
“Foodstuffs is 100% New Zealand owned and has been around for over 100 years. They’re a family of co-operatively owned NZ retailers, wholesalers and collectively, one of New Zealand’s largest employers – with 38,000 people working across 550+ stores, supply chain and support centres. Their stores are locally owned and operated by grocer families who’re embedded in their communities,” the IM said.
53 Leach St spans Courtenay St and Leach St both forming part of the State Highway 45 main arterial routes and one-way system of the city’s CBD.
Investore’s portfolio was valued at $1b as at March 31, down $99m or 9 per cent in the last year, primarily due to higher interest rates.
In the year to March 31, 2024, the company declared a loss after income tax of $67.1m due to the $98.7m reduction in fair value of its investment properties.
James Kirkpatrick Group’s mass timber building draws praise
This scheme announced last week drew extremely positive responses from many quarters, the sector excited by the radical plans.
The low carbon nature of the plans drew some to call them “epic”.
James Kirkpatrick Jnr, group chief executive and managing director, said the building was planned to rise 10 levels from the Karangahape Rd elevation, have around 9500sq m of office space with two levels of basement for 48 car parks and “encourage a high-quality tenant in line with some of the green initiatives required for their businesses or their clients”.
Once completed, the land and new building might be valued together at around $100m, he forecast, although resource consent has yet to be granted.
The group’s application for an 11-level building was notified, submissions closing on June 6: part will rise to 10 levels, part to 11, planners Mt Hobson Group said.
What does a ‘dark store’ for Woolworths look like?
Australian retailer Woolworths is launching this new direct to boot concept in which online orders are fulfilled.
The assessment of environment effects for the application at 25 Lake Rd, Devonport shows an existing building on the site is to be refurbished with new signage and cladding and utilised for the supermarket concept.
No store is to rise: only a fulfilment centre.
The existing premises are to be renovated and refurbished within the current footprint, with some new cladding proposed, repainting, and obscure glass to be used for existing glazing.
The premises will be used for storing food and grocery items and assembling those items to fulfil customers’ online orders, according to the assessment of environmental effects.
The items will be delivered to the premises from a larger sub-regional distribution centre, via truck.
“Customers then drive into the site during a pre-arranged collection ‘window’ and park within one of the five pickup bays in the forecourt area. The customer order is brought by staff to the customer’s vehicle, and loaded into the boot. The customer then leaves the site. Members of the public cannot enter the premises and would generally not leave their vehicles, and there is no retail facility, function or transaction undertaken on site,” the Assessment of Environmental Effects from Campbell Brown says.
The essentially flat L-shaped site area is 1535sq m and was at one point a petrol station, more recently a vehicle servicing centre.
Woolworths applied for its new use as a “freight depot”. The building is only 263sq m.
A truck loading dock and canopy will be constructed at the rear of the building, to provide for delivery of goods.
The proposal will enable Woolworths to respond to the increased demand in online orders that has occurred since the Covid-19 lockdowns. This demand has not abated, the assessment said.
It will ensure community needs, in particular in the Devonport area, can be met in a timely manner.
The proposal will enable Woolworths customers to get groceries more efficiently, with reduced vehicle kilometres and time spent in undertaking this regular household task. The reduced vehicle kilometres travelled will have positive benefits in relation to greenhouse gas emissions, the application said.
It will also provide employment, the assessment said.
Approval for the non-complying activity was granted on May 28 by Steve Seager, Auckland Council’s team leader of resource consents.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
