Farmlands' 2009-built Kaitaia store is to go under the auctioneer's hammer on a sale and lease-back basis.
Farmlands, the North Island's largest rural co-operative retailer, says the move is part of a growth plan.
The Kaitaia store is one of six Farmlands stores to be auctioned in April. The other stores are
Farmlands chief executive, Peter Ellis, says the sale of the stores will release capital for further investment as part of a long-term strategic plan in the development of the organisation.
"Over the last few years we have been investing in new branches and branch refurbishments. We have just opened our 42nd store and will open two new stores and refurbish a further four in the first half of this year. That will mean a total of 45 stores operating throughout the North Island, giving the company in excess of 25 per cent of the rural retail market.
"We're unlocking the value of our real estate holdings to re-invest in the expansion of Farmlands as part of a growth strategy that will deliver an exciting future for the company, shareholders, and the wider rural community.''
Pat Turley, of property advisers Turley & Co, is leading the disposals project for Farmlands. It is expected the Kaitaia store will attract national buyer interest.
"Properties like this are not an everyday opportunity,'' said Mr Turley. "New buildings leased long-term to high-calibre tenants like Farmlands are rare property investment opportunities, particularly in our smaller centres."
Mr Turley says Farmlands lease-back properties sold by auction in November 2009 for between $1.5 and $2.4 million realised $12.8 million at an average yield of 7.48 per cent and as keen as 6.3 to 6.9 per cent yield.
"Given the current high levels of uncertainty in equity and financial markets, we anticipate a great deal of interest in the properties, which will be marketed to investors in New Zealand and overseas.''
The six properties will be auctioned in Tauranga in early April with offer details available from the middle of this month.
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