Big-box portfolio fetches $21m
A portfolio of four big-box retail premises in Hastings at The Park Mega Centre has sold for $21 million to Wellington buyers.
The vendor, Caboo Properties, is owned by property investors Warren Ladbrook and Gordon Johnstone.
The tenants in the four properties are The Clearance Shed, Briscoes and Rebel Sport, Petstock, and Noel Leeming.
The four properties comprise half the eight stores in the mega centre, though they take up about a quarter of the land area.
Ladbrook said the sale was ‘‘a great result, confirming our belief in Hastings and the wider Hawke’s Bay market for investment’’.
‘‘The site had some complications due to historical design issues, but these were resolved by a supportive and proactive approach by [the] Hastings District Council.’’
The combined capital value of the four properties was $16.58m, according to council records.
‘‘The sale is a significant bellwether and major vote of confidence in the Hawke’s Bay economy that is clearly rocking,’’ Hawke’s Bay valuer and property strategist Pat Turley said.
The properties were chased hard, Turley said, and the buyers were Clement Stephen Griffiths and Patricia Anne Griffiths.
According to Turley’s analysis, the properties had a combined annual net rent of $1.359m.
The four leases had 2.5 to 7.5 years to run. The highest rent and longest remaining lease term was for Briscoes and Rebel Sport at $644,920 a year with 7.5 years remaining, Turley said.