Bunnings anchors Avondale property

This freehold Avondale property is leased long-term to Bunnings.

A big Avondale property with a Bunnings Trade Centre store as the anchor tenant and spare land available for development is being offered for sale by Colliers International.

"Investors seeking a secure, long-term lease with one of New Zealand's most recognisable retail brands in a solid industrial location need look no further," says agent Jason Seymour who, with colleagues John Green and Greg Goldfinch, is marketing 494A Rosebank Rd for sale by private deadline treaty closing at 4pm on Wednesday December 10 unless it sells earlier by negotiation.

"This freehold property has a long-term lease to Bunnings which occupies just over half the total 15,925sq m site," says Seymour. "The balance is surplus land which could become two separate development sites and that will increase its appeal to add-value investors.

"Nearly 8000sq m of the site encompasses the Bunnings centre and comes with a new 10-year lease with three rights of renewal of eight years."

The property is generating net annual rental of $488,950 with built-in 2.5 per cent annual growth and market reviews with "cap and collar" provisions on renewal to prevent the lease rates rising or falling outside an agreed range.

"This combination of a proven, committed tenant and an occupancy potentially spanning the next three decades offers investors exceptional security," says Seymour.

The Bunnings Trade Centre includes a 2941sq m warehouse with 738sq m of canopy and a 4302sq m yard area. The warehouse is being extensively refurbished and upgraded to include new roller shutter doors and a full colour steel canopy. This upgrade work will be complete and the business will be trading by the end of this month.

"This Bunning's development is predominantly trade specific, but it forms an essential part of the company's rapidly expanding retail and trade network in New Zealand," says Seymour.

Bunnings is a leading Australasian home improvement and outdoor living retailer and also a major trade supplier. It is wholly owned by Wesfarmers, one of Australasia's largest listed companies, which owns other high-profile brands such as supermarket Coles, Target and K-Mart.

The Bunnings Trade Centre is a new outlet in the Bunnings network and was specifically developed to service a rapidly expanding demand and trade business in the western suburbs

"Over and above the length of the lease, this is a quality, adaptable building suited to a wide range of occupiers which future-proofs the property's potential," says Seymour.

The single title includes two undeveloped areas of 2266sq m and 2655sq m adjoining the leased Bunnings area. Goldfinch says the two land parcels, in an industrial area with exceptionally high growth demand, offer investors a significant add-value proposition.

"Auckland's current industrial vacancy rate is less than 3 per cent so this property represents a genuine opportunity and the promise of security for investors looking to expand in this sector of the market."

The property is currently zoned Business 5. Under the proposed Auckland Unitary Plan it will sit within the Light Industry zoning allowing for manufacturing, production, logistics, storage and distribution activities.

Rosebank Rd is only 13km west of Auckland's CBD and has a well-established commercial and manufacturing precinct. It has good access to the State Highway 16 Northwestern Motorway and is the main arterial route from the motorway to major western suburbs.

Green says Avondale, Waterview, New Lynn and Kelston are experiencing significant population increases due to major infrastructure development in the area and are recognised as key growth centres for the Auckland region.