Farm Source stores sold off for $10m

Matamata Chronicle - - What’s On -

Six Fon­terra Farm Source stores around the North Is­land have sold at auc­tion for nearly $10 mil­lion..

Stores in Mor­rinsville, Mata­mata, Ngatea, Pu­taruru, Opunake, Shan­non, Manaia and Galatea went un­der the ham­mer.

The prop­er­ties sold for a com­bined $9.9 mil­lion, all with eight year lease backs to RD1, a wholly owned sub­sidiary of Fon­terra, from their set­tle­ment date of July 23.

The prop­er­ties were auc­tioned by Bay­leys and jointly mar­keted with CBRE’s di­rec­tor of agribusi­ness Jeremy Keat­ing.

Keat­ing said RD1 has 71 ru­ral stores na­tion­wide which are be­ing pro­gres­sively re­branded as Farm Source as part of a move to pro­vide ‘one stop’ fa­cil­i­ties pro­vid­ing ru­ral sup­plies ser­vices as well as ad­vice and sup­port to ru­ral com­mu­ni­ties.

‘‘With many of the stores in the na­tion­wide net­work now trad­ing as Farm Source out­lets, the op­por­tu­nity is be­ing taken to free up cap­i­tal to re­de­ploy within the busi­ness – pro­vid­ing the chance for in­vestors to se­cure well leased and lo­cated ru­ral prop­er­ties,’’ Keat­ing said.

Bay­leys com­mer­cial man­ager for the Waikato, Bay of Plenty and Taranaki, Richard Gra­ham said there was a lot of in­ter­est in the prop­er­ties.

‘‘We would have had at least a dozen bid­ders in our Hamil­ton auc­tion room com­pet­ing for the four prop­er­ties that went un­der the ham­mer there,’’ Gra­ham said.

‘‘Three of those prop­er­ties sold at yields of be­tween 6.4 per cent and 6.7 per cent af­ter spir­ited bid­ding which re­in­forces the fact that good qual­ity re­gional prop­er­ties with strong lease covenants are at­tract­ing plenty of de­mand and ex­cel­lent out­comes for ven­dors. They are also pro­vid­ing higher in­come re­turns to in­vestors than are avail­able in ma­jor metropoli­tan mar­kets.’’

The high­est price was $2.61m for a 1052 square me­tre Farm Source store in Mata­mata at a 6.6 per cent yield.

In nearby Mor­rinsville, a 1043sqm store on Thames Street, sold for $2.305m, at a 6.6 per cent yield.

A Ngatea store went for $1.95m and the low­est yield of 6.4 per cent.

The 596sqm store sits on a 4555sqm site at Or­chard West Road Ngatea.

PHOTO: SUP­PLIED

A Fon­terra farm source store in Ngatea went for $1,950,000 at an auc­tion.

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