Supercheap Auto premises set to rev’ up property investment market
The land and buildings housing one of Gisborne’s largest automotive parts and tools retailers has been placed on the market for sale.
The city’s branch of Australian retailer Supercheap Auto at 412 Gladstone Road is a 670 square metre single-storey premises sitting on a share of approximately 3590 square metres of land.
Gladstone Road is Gisborne’s main arterial route into the central business district. The commercial-zoned Supercheap Auto location shares its presence with neighbouring retailer Liquorland. Immediately adjacent along the Gladstone Road strip are other big-brand retailers such as Repco, Countdown, Avanti Plus, Hirepool and Caltex.
The standalone concrete premises at 412 Gladstone Road was purpose-built for Supercheap Auto in 2005, and features 16 car parks. Supercheap Auto has just signed a new six year lease through until 2023 – generating an annual net income of $122,569, with the tenant paying all outgoings including council rates, insurance and water charges.
Supercheap Auto has 41 stores operating across New Zealand in every provincial city. The Australian parent company, Super Retail Group, is listed on the Australian stock exchange and operates 300 retail sites across the Tasman.
Super Retail Group operates such sister retail brands as Amart Sports, Avanti Fitness, BCF Boating Camping Fishing, Goldcross Cycles, Rays, Rebel, and Workout World – generating annualised turnover in excess of Au $2 billion.
The land and rectangular-shaped building at 412 Gladstone Road are being jointly marketed for sale at auction on April 12 in Auckland by Bayleys Gisborne and Bayleys Hawke’s Bay. The property features in Bayleys’ latest Total Property portfolio out now.
Salesperson Paul Garland said the Supercheap Auto building was constructed with pre-cast concrete panelling supported by steel portal framing. This delivered a new build standard of 100 percent which was equivalent to an A-grade classification under the initial evaluation procedure (IEP).
“With 23 metres of street frontage onto Gladstone Road, the location delivers a business profile sought by any high-volume retail brand, and was one of the primary reasons Supercheap Auto was quick to initiate a presence on this route into and out of town,” Mr Garland said.
“Since the mid-2000s, other mid-size retail operations have subsequently shimmied outward from the city’s central business district to the Gladstone spine - where per square metre rates for premises are more attractive.
“Gisborne is somewhat different in this perspective to many other provincial New Zealand cities - where big-box and large floorplate retail operations have moved well out into the suburbs as destination shopping clusters. Being a relatively compact city though, Gisborne residents have few qualms travelling across town to their selected retail destination.
“In addition to on-site car parking spaces at the front of the premises, there are also considerable on-street parking options on both Gladstone Road, and Disraeli Street to the rear of the property.”
Mr Garland said a regular asset maintenance schedule had ensured the Gladstone Road property had been kept at a high standard of performance throughout its relatively short life – enabling rental returns to be kept at an optimum level.
“With a tenant whose parent company is listed on the Australian stock exchange, sustained by an attractive long-term lease contract in place, we are forecasting that the property will most likely appeal to the investment sector,” Mr Garland said.
The land and buildings have a Gisborne District Council rating valuation of $655,000 – comprising of $360,000 for the building and $295,000 for the land. Supercheap Auto Gisborne’s interior fit out is indicative of the brand’s tried-and-true ‘supermarket’ style layout – with wide aisles separated by head-high long-run central shelving display units.
Administrative offices and staff amenities – including a small kitchen area and bathrooms – are located at the rear of the building.