New stores go on sale in re-in­vest­ment plan

South Waikato News - - RURAL DELIVERY -

Farm­lands is auc­tion­ing its newly­built Pu­taruru store on a sale and lease back ba­sis as part of the com­pany’s strate­gic growth. The Pu­taruru store is one of six Farm­lands stores to be auc­tioned in April. The other new stores are in Kaitaia, Paeroa, Tai­hape, Opunake and an ex­ist­ing store at Waipapa in North­land.

The move fol­lows the sale and lease back of seven Farm­lands stores in late 2009.

Farm­lands chief ex­ec­u­tive Peter El­lis said the sale of the stores would re­lease cap­i­tal for fur­ther in­vest­ment as part of a long-term strate­gic plan in the devel­op­ment of the or­gan­i­sa­tion.

‘‘Over the last few years we have been in­vest­ing in new branches and branch re­fur­bish­ments,’’ Mr El­lis said.

‘‘We have just opened our 42nd store and will open two new stores and re­fur­bish a fur­ther four in the first half of this year.

‘‘We’re un­lock­ing the value of our real es­tate hold­ings to re-in­vest in the ex­pan­sion of Farm­lands as part of a growth strat­egy that will de­liver an ex­cit­ing fu­ture for the com­pany, share­hold­ers and the wider ru­ral com­mu­nity,’’ he said.

Pat Tur­ley, of prop­erty ad­vis­ers Tur­ley & Co, is lead­ing the dis­pos­als project for Farm­lands.

Mr Tur­ley said the Pu­taruru store was ex­pected to at­tract sig­nif­i­cant in­ter­est given the suc­cess and strength of the Farm­lands brand and the qual­ity of the build­ing as­set on a prom­i­nent main road po­si­tion in the heart of dairy and forestry coun­try.

‘‘It is one of Pu­taruru’s the best mod­ern com­mer­cial-re­tail build­ings. Pu­taruru is cen­trally sit­u­ated to sev­eral ma­jor pop­u­la­tion cen­tres,’’ he said.

‘‘New build­ings leased long term to high­cal­i­bre ten­ants like Farm­lands are rare prop­erty in­vest­ment op­por­tu­ni­ties, par­tic­u­larly in our smaller cen­tres.

‘‘Farm­lands Pu­taruru is a great, ‘hand­soff’, high-cal­i­bre build­ing prop­erty in­vest­ment with a solid lease covenant.’’

The six prop­er­ties will be auc­tioned in Tau­ranga in early April with of­fer de­tails avail­able from about mid-Fe­bru­ary.

FOR SALE: The Farm­lands store in Pu­taruru, which opened in De­cem­ber, is on the mar­ket.

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