Co-op puts high performing sites on the market
Three Waikato Farmlands stores are being offered up for a sell and lease-back deal.
The co-operative is selling its Matamata, Huntly and Te Awamutu buildings.
All three farm goods stores will continue to operate from the locations, and Farmlands will lease the sites back from the buyer.
The properties are being marketed to shareholders and the public by Farmlands Real Estate, a wholly-owned subsidiary of the group.
‘‘It’s just the policy that the co-operative has,’’ Farmlands Real Estate general manager Calvin Leen said.
‘‘They’ve been getting out of the ownership of buildings and putting that equity back into the business to help drive other sales opportunities.’’
Last year the co-operative merged with ‘‘ sister co- operative’’ CRT, which had already divested itself of most of its properties.
Farmlands has nine retail properties in the North Island and chose these three as good options to put up for sale.
‘‘The reason why we’ve put these particular stores to the market . . . is there’s three different price points here of the market.
‘‘And obviously the Waikato; we see that as being a good long-term area for people to invest in,’’ Leen said.
‘‘ Strategically they’re locations.’’
He said stores.
‘‘The Te Awamutu store is the leading merchandise store nationally for the Farmlands co-operative.’’
The co- operative operates throughout New Zealand.
Based on Benson Rd, the land area of the Te Awamutu store is 4500sqm with a building area of 1060sqm.
The Matamata store, on the corner Mangawhero Rd and Rockford St, 1091sqm on a land area of 4405sqm.
Both stores were built and opened 2011.
The Huntly store on George Dr was built and opened in 2012.
The land area is 3861sqm with a building area of 840sqm.
Farmlands will lease the buildings for an initial 12-year fixed term with seven rights of renewal for three years each.
The Te Awamutu store will return $189,100 a year in rent, and Matamata and Huntly will return $178,735 and $132,025 respectively.
Tenders close on December 10.
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