A bulk retail centre housing several publicly-listed and high profile national and international companies is for sale in Pukekohe south of Auckland.
The Pukekohe Mega Centre, at 194 Manukau Road, Pukekohe accommodates seven retail tenancies, including Harvey Norman, Briscoes and Warehouse Group-owned retailer Noel Leeming.
Marketed by Jason Seymour, John Green and Peter Herdson of Colliers International, the freehold property will be sold by way of private treaty, with the deadline for offers closing at 4 pm on Wednesday December 16 unless it sells earlier by negotiation.
"Harvey Norman is an ASX 100 company with a market capitalisation of over A$4 billion, while the parent company of Noel Leeming, The Warehouse Group, has market capitalisation of over $900 million," Seymour says.
"Rebel Sport and Briscoes are part of the Briscoe Group, an NZX-listed company with 80 stores across New Zealand and a market capitalisation of approximately $600 million."
Seymour says a feature of the property is its long term rental income with over 82 per cent of the income locked in until at least 2022.
"In addition the property has 3720 sq m of development land with potential for six more retail units in the future.
"The net lettable area of 10, 882 sq m generates a current rental income of $1.483 million, which provides investors with secure cash flow while they consider their options to expand the centre as the local population continues to grow.
"Given the land shortages throughout Pukekohe, development opportunities such as this are rare."
Built in 2007, the modern centre is constructed of a steel portal frame, a long run metal roof, reinforced concrete floors and external walls made of concrete tilt slab and incorporating retail glazing.
Herdson says the buildings provide high stud, bulk retail space with excellent car parking and prominent tenant branding at the front with generous delivery access at the rear.
The centre has 750 parking spaces on-site with vehicle entry from Wrightson Way which connects to Manukau Rd in the west and Crosbie Rd in the north.
Green says the centre is about 1.2 km south of the Pukekohe Town Centre. "It is directly adjacent to Pukekohe Park which is known internationally as motor racing circuit. However, it is primarily a horse racing and training facility, incorporating a first-class function centre.
"The centre is situated in a high visibility position on the eastern side of Manukau Rd, a street with a strong emphasis on bulk retail and other commercial uses."
Pukekohe is a rural service town located at the southern edge of the Auckland region about 50 km from Auckland City. The rural divide between Pukekohe and Auckland City has narrowed considerably over the years because of the substantial expansion of both locations.
"With a population of around 29,000 people it is the fastest growing secondary urban area in New Zealand," Green says. [NB: secondary urban areas have populations between 10,000 and 29,999.]
"Census figures show the area has high media income and high home ownership rates making it a firm and affluent base for local businesses.
Herdson says the centre is likely to be New Zealand's most significant bulk retail investment opportunity for 2015.
"With a huge, six-hectare land holding in New Zealand's fastest growing secondary urban area paired with exceptional investment security backed by several of New Zealand and Australia's most successful retail organisations, this offering has all the makings of a secure, long-term investment," Herdson says. "Pukekohe is identified in the Auckland Plan Development Strategy as a priority satellite town that is anticipated to grow to a population of 40,000 people by 2040 - nearly double its current population."
Leroy Wolland, retail director for Colliers, says investors can take confidence in the strength of covenant of the brands which have chosen the location.
"Harvey Norman, Noel Leeming, Rebel, Briscoes, and Godfreys have been successfully trading from the centre for several years, while Hunting & Fishing has recently signed up a new long term lease."
Although separately owned, Mitre 10 Mega and Countdown also act as strong anchor tenants for the centre, Wolland says.