Big player in Far North up for sale

Placemakers Kerikeri, one of the Far North's largest retail properties and with a lease in place that potentially extends out close to the mid-century, goes under the hammer at Bayleys Real Estate in Auckland on December 5 unless sold earlier.

Placemakers supplies the building trade and the DIY market nationwide.

Bayleys is marketing the sale as "a good opportunity to secure a prime investment property in an affluent provincial growth area".

Bayleys executive director David Bayley of Auckland, who is marketing the property with Chester Rendell and Alan Broadbent of Bayleys Kerikeri, says lessee Fletcher Distribution Ltd (trading as Placemakers) had a strong history of performance.

The lease terms offered guaranteed rental income growth from three-yearly rental adjustments based on the increase in the Consumer Price Index, he said.

The rent, currently $546,695 annually, was also reviewed to market at each of the four lease renewal periods and could not be less than the existing rent or greater than the annual rent payable in the previous 12 months plus 10 per cent. A three-bedroomed house on site and the 1.24 hectare block of vacant land at the back of the property also represented added-value opportunities for investors.

The Placemakers Kerikeri lease began in the then-new building in 2006 and runs until 2018, with the four rights of renewal potentially extending the lease to 2041.

Bayley says a three-bedroomed house on site and the 1.24 hectare block of vacant land at the back of the property also represent added value opportunities for investors.

Chester Rendell says Kerikeri is the fastest growing area in the Far North with a population increase of 10 per cent between the 2001 and 2006 census to 5,856, with further growth since then and an active building market driven by the growing permanent population and holiday home owners, particularly from Auckland and overseas.