One of the biggest and potentially most valuable portfolios of commercial property seen within the Tasman region is for sale.
The quartet of properties — comprising The Warehouse, Countdown, Burger King, and Placemakers — stretches from Blenheim to Motueka.
The properties, owned by the Nelson-based family-run business Gibbons, founded in 1950, are as follows:
• 14 Redwood St, Blenheim: 12,260sq m of land occupied by The Warehouse in a 7011sq m building with an additional 3390sq m two-level carpark building. The Warehouse is on a nine-year lease through to 2027, with three further four-year rights of renewal, generating annual rent of $1,065,330. The lease provides for three-yearly rent reviews.
• 34-36 Main St, Blenheim: 1770sq m of land housing a Burger King outlet in a 253sq m building. Burger King's lease term runs through to 2023, with two further four-year rights of renewal, generating annual rent of $176,800. The site provides car parking for 23 vehicles. The lease provides for three-yearly rent reviews.
• 104 and 108 High St, Motueka: 6340sq m of leasehold land housing a Countdown supermarket in a 2957sq m building. The building is also tenanted by Motueka Dental Centre. Occupying most of the site, Countdown is on a lease running to 2026, with two further 10-year rights of renewal. Motueka Dental Centre is on a lease running to 2023. Both tenancies generate a combined net annual rent of $407,733, and provide for two-yearly rent reviews.
• 82 High St, Motueka: 2240sq m of leasehold land housing a branch of Placemakers in a 596sq m building. Placemakers is on a lease running through to 2027, with three further seven-year rights of renewal, generating annual rent of $60,311. The lease has three-yearly rent reviews written into it.
The collection is being marketed for sale by auctions and tenders nationwide through Bayleys Real Estate teams in Nelson, Blenheim, and Auckland, and internationally in conjunction with Bayleys' global marketing alliance partner Knight Frank.
The properties at 34-36 Main St, Blenheim, and 82 High St, Motueka, are being marketed for sale at auction on March 6; while the properties at 14 Redwood St in Blenheim and 104 and 108 High St in Motueka are being marketed for sale by tender, closing at 4pm on March 12. The four properties feature in Bayleys' latest Total Property portfolio magazine.
Bayleys Nelson salesperson Paul Vining says the two premises being marketed for sale by tender could be tendered for individually, or as one combined lot.
"The portfolio in this format has been built up over 23 years, with the tenancies and locations creating a truly spread-risk investment collection — both in terms of tenants and locations. This is reflected both from a geographical perspective, and from a retailing sector standpoint — as the various tenures cover the very different grocery, foodservice, homewares, and building supplies sectors.
"The one thing they do have in common is their high-profile positions in the urban locations. The old adage of 'location, location, location' was an underlying pre-requisite when they were bought.
"All four properties tick the basic essential fundamentals for any investor — all being modern buildings with solid tenants on long leases."
Bayleys national director commercial and industrial, Ryan Johnson, says the properties will appeal to medium-sized family trusts right through to corporate entities.
The purpose-built Placemakers depot in Motueka is the most modern building in the portfolio, having been completed in 2016. This high-stud warehouse faces onto State Highway 60 and is surrounded by a large yard allowing easy truck access. It has car parking for 23 vehicles from dual entry points.
The Burger King premises in Blenheim was built in 1996 then substantially redeveloped when Burger King took up residency in 2011. Site improvements at that time included the installation of a large sealed carpark and drive-through loop around the building.
Similarly, the building now housing Countdown supermarket, on SH60 in Motueka, was built in 1996 and totally redeveloped in 2011 when the supermarket took up residency. Other big retail entities close by include Z Energy, New World, and McDonalds.
The Warehouse premises in Blenheim was purpose built in 1996, then reformatted and extended in 2008. It has three road frontages and is in Blenheim's "big box" retailing part of town, close to other prominent trading entities such as Smith City, New World, BP, a multi-screen cinema complex, and the council-run stadium and swimming pool complex.
Vining expects interest from within the Nelson, Tasman and Marlborough regions, and from investment syndicates and funds throughout New Zealand. He says the size and diversity of the portfolio also places it in the potential sights of international investors looking for an Upper South Island profile.