Suburban retail shopping hub sell down continues
The sell down of commercial units within urban Rotorua’s Redwood Centre retail and healthcare hub continues – with the Bin Inn store the latest to be placed on the market for sale.
The 4,500 square metre Redwood Centre some three kilometres east of Rotorua’s central business district opened in February last year – with 19 tenancies signing up to be part of the hub.
Every unit within the Redwood Centre which has been brought to the market for sale since then has been snapped up by either Rotorua-based investors or several retail business owner/operators within the precinct.
Among the tenancies which have been sold are: Burger Fuel, the Anytime Fitness gym’, Domino’s pizza, the pharmacy and physiotherapy practice, Couplands butchery, and Mt Tarawera Fruit and Vege’.
The latest individually-titled unit to go up for sale is the Bin Inn premises - occupying 220 square metres on a corner site, currently leased until 2021, with two further six-year rights of renewal taking the potential lease term out to 2033. The property generates $48,000 of income per annum, with regular reviews scheduled over the length of the tenancy.
The single storey Bin Inn retail site is being marketed for sale by Bayleys Rotorua through an auction taking place on July 31. Bayleys Rotorua salesperson Mark Rendell said the continuing process of ‘drip feeding’ Redwood units onto the market was part of the developer’s business model. That model encompassed firstly converting the corner location from a dated, underutilised site into a slick, fully-tenanted retail draw card straddling Rotorua’s central business district on one side, and the leisure-focused lakes district on the other.
“The sale of all the tenancies within the Redwood Centre to date reflects the sustainability and attraction of its location, the quality of build, and the spread of tenants occupying the development,” Mr Rendell said, “and there is every indication that trend of strong investor support will continue with the Bin Inn property.”
“The commitment of a new, long-term lease by the existing tenant has underpinned the attraction of the property from a pure investment perspective. The building’s near-new age also means that there is minimal maintenance and certainly no modernisation budget requirements which have to be accrued for.
“From an investment perspective, the sites within Redwood really do tick all the boxes, and have shown to deliver excellent rental yields well in excess of some of the more dated commercial investments around the city.”
Bin Inn is 100 percent New Zealand owned and operated retail brand with 35 stores nationwide – stretching from Kerikeri in the north to Invercargill in the south. The store sells wholefoods, fruits, grains and speciality produce – discounting products through a bulk packaging model.
Redwood Centre has communal parking for some 205 vehicles – optimising shared usage periods throughout the day and into the evening. The hub operates under a body corporate management structure. All buildings within the development, including the Bin Inn unit, are constructed of tilt slab concrete with long run steel roofing. The Bin Inn property has certification for 100 percent of New Building Standards.
The fit out of the Bin Inn premises is open-plan boutique supermarket style. The retail space has a suspended ceiling with air conditioning. Located at the rear of the tenancy is a large staff room, toilet, cleaner’s sink, and storage room with access onto a service lane.