Huge Tasman commercial property portfolio placed on the market for sale
One of the biggest and potentially most valuable portfolios of commercial property in the Tasman region has been placed on the market for sale.
The four large commercial retail premises house the high profile branded tenants: The Warehouse, Countdown, Burger King, and Placemakers. The quartet of properties stretches from Blenheim through to Motueka, and is owned by Nelson-based family-run business Gibbons, which was founded in 1950.
The property portfolio consists of:
• 14 Redwood Street in Blenheim – 12,260 square metres of land occupied by The Warehouse in a 7,011 square metre building with an additional 3,390 square metre two-level carpark building. The Warehouse is currently on a nine-year lease running through to 2027, with three further four-year rights of renewal, generating annual rental of $1,065,330. The lease provides for three-yearly rent reviews.
• 34 – 36 Main Street in Blenheim – 1,770 square metres of land housing a Burger King outlet in a 253 square metre building. Burger King’s lease term runs through to 2023, with two further four-year rights of renewal, generating annual rental of $176,800. The site provides car parking for 23 vehicles. The lease provides for three-yearly rent reviews.
• 104 and 108 High Street in Motueka - 6,340 square metres of leasehold land housing a Countdown supermarket in a 2,957 square metre building. The building is also tenanted by oral healthcare facility Motueka Dental Centre. Occupying most of the site, Countdown is currently on a lease running through to 2026, with two further 10-year rights of renewal. Meanwhile, Motueka Dental Centre is currently on a lease running through to 2023. Both tenancies generate a combined net annual rental of $$407,733.60, and provide for two-yearly rent reviews,
• 82 High Street in Motueka – 2,240 square metres of leasehold land housing a branch of Placemakers in a 596 square metre building. Placemakers is currently on a lease running through to 2027, with three further seven-year rights of renewal, generating annual rental of $60,311. The lease has three-yearly rent reviews written into it.
The collection of properties 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 Street in Blenheim and 82 High Street in Motueka are being marketed for sale at auction on March 6, while the properties at 14 Redwood Street in Blenheim and 104 and 108 High Street in Motueka are being marketed for sale by tender, with tenders closing at 4pm on March 12.
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 some 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 geographic 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 however all 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 all purchased.
“Additionally, all four properties tick the basic essential fundamentals for any investor – all being modern buildings with solid tenants on long leases.”
The purpose-built Placemakers depot in Motueka is the most modern building in the portfolio, and was completed in 2016. The high-stud warehouse faces directly onto State Highway 60, and is surrounded by a large yard allowing for easy access by trucks and trade vehicles, along with car parking for 23 vehicles from dual entry points.
The Burger King premises in Blenheim was originally built in 1996 and was substantially redeveloped in 2011 when Burger King took up residency. Site improvements at that time included the installation of a large sealed carpark and drive-through loop around the building.
Similarly, the Countdown supermarket in Motueka on State Highway 60 was built in 1996 and totally redeveloped in 2011 when Countdown took up residency. Other big retail entities in the immediate vicinity include Z Energy, New World, and McDonalds.
Meanwhile the purpose-built Warehouse premises in Blenheim was originally constructed in 1996, and was reformatted and extended in 2008. The property has three road frontages and is located 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.
Mr Vining expected interest to come from within the local Nelson, Tasman, Marlborough regions, and from investment syndicates and funds throughout New Zealand. He said the size and diversity of the portfolio also placed it in the potential sights of international investors looking for an Upper South Island profile.
Bayleys national director commercial and industrial, Ryan Johnson, said the various sale permutations of the four properties meant they would have a broad appeal in the market – from medium-sized family trusts through to corporate entities.