Property investors switch on as electrical supply company’s retail branch comes up for sale
A fully refurbished and re-developed trade retail premises housing one of New Zealand’s largest electrical trades-supplies companies has been placed on the market for sale.
The extensive trade retail, office and warehousing plant at 176 – 178 Station Road in Auckland’s premier commercial and light industrial precinct of Penrose is tenanted by electrical wiring, componentry, and switch gear supplier Ideal Rexel Group.
Trading as Ideal Electrical New Zealand with a network of some 48 branches across the country stretching from Whangarei to Invercargill, Ideal Electrical specialises in selling product to electricians servicing commercial, domestic and industrial building markets, and forms part of the Ideal Rexel Group which is a European-based publicly listed company.
Ideal Electrical has signed a new ten year lease at 176 – 178 Station Road running through to 2029 with two further five-year rights of renewal, generating a net rental of $266,780 plus GST per annum.
The Deed of Lease has provisions for market rent reviews every five years, with annual Consumer Price Index-linked increases providing future rental growth. Ideal Electrical pays 100 percent of the buildings’ operational expenses.
The 1,622 sqm freehold site in two titles along with 950 square meters of building, are being marketed for sale by auction on April 15 through Bayleys Auckland salespeople James Valintine, James Hill and Sunil Bhana.
“The front portion of the seamlessly-joined buildings features the fully refurbished existing building of the store’s trade retail showroom space - with aisles of shelving and wall-mounted product lines on display - while the brand new full tilt-slab warehouse premises to the rear is racked for product and storage over flow,” Mr Valintine said.
“The brand new rear warehouse portion was purpose-built for the current tenant, and has wide and high roller door access allowing for larger trade vehicles to load up supplies efficiently.”
Mr Hill added: “That rapid turn-around ability allows for the tenant’s trade customers to service their mixed residential and commercial clientele in the neighboring suburbs of Ellerslie, Royal Oak, and Onehunga, or the more commercial and industrial customer bases in the likes of Penrose, Otahuhu, and Mt Wellington.”
In addition to the showroom portion within the buildings, there is also administrative offices, a staff lunchroom, toilet and amenities. The buildings have a new build standards (NBS) rating well over code, while the location is zoned Business – Light Industry under the Auckland Council plan.
Mr Hill said Ideal Electrical had taken advantage of the buildings’ prominent street frontage onto Station Road for branding purposes. Both the buildings also face onto a sealed car park with space for 22 vehicles and yard.
“The ‘partnership’ approach taken between the tenant and landlord at 176 – 178 Station Road has set the location up well from a future-proofing building infrastructure perspective – hence the long lease in place in the heart of the industrial precinct of Penrose,” Mr Hill said.
“The very nature of buildings, businesses, and tenants within the urban area of Penrose and surrounding suburbs essentially dictates that any tenancies along Station Road will always be of a light industrial dynamic which ensures the area will provide strong demand for tenants and occupiers for years to come.”