New stores go on sale in re-investment plan
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.