Farmers Whanganui has 25-year lease
A newly built Farmers department store in central Whanganui is for sale with a 25-year lease.
Colliers International directors Blair Peterken, Gareth Fraser and Phil Nevill are marketing the property at 85-97 Victoria Ave and 74-96 Saint Hill St by deadline private treaty, closing November 15, unless sold earlier.
Peterken says the 7530sq m freehold property has three frontages, providing excellent exposure to the main Whanganui retail strip of Victoria Ave.
Built in 2015, the standalone department store spans some 5,660.5sq m over two levels, he says.
“A popular Stevens kitchen and homewares store is within Farmers, while the remainder of the property comprises 1170sq m of additional retail space. A 71-space public car park is on site, in addition to metred street parking in the area.”
Peterken says along with the strong tenant covenant, the property has a solid passing income of $1,123,544 pa.
“The lease to anchor tenant Farmers has 22 years remaining, with the potential for rental growth from the first annual review in 2020,” he says. “The property also has a new 12-year lease to Whanganui’s oldest eatery, the 62-year-old Cactus Creme Cafe, which reopened this month in a 185sq m unit fronting Victoria Ave.
“An additional 985sq m of vacant retail space is also available for lease.”
Once fully leased, the property is projected to return an estimated $1,457,798pa.
Peterken says the long-term lease makes this a low-risk growth investment.
“It has everything wanted in an investment — great tenant covenant, scope for rental growth and long-term security of occupation. It truly is a solid long-term play.”
Fraser says Farmers backs on to the northern side of Saint Hill St — a vehicular bypass of Victoria Ave, which it runs parallel to.
The site has 50m of frontage to Victoria Ave, 67m to Maria Place and 96m to Saint Hill St.
“The property is well positioned between the Cooks Gardens sporting stadium and Whanganui’s main retail strip,” Fraser says.
“Nearby retailers include The Warehouse, Rebel Sports, Countdown, Whitcoulls, Hallensteins, Cotton On and Stirling Sports.”
Nevill says the building is seismically sound, having been constructed to 100 per cent of the new building standards.
“The structural walls are of precast concrete or masonry, with structural frames of either reinforced concrete or steel,” he says.
Nevill says anchor tenant Farmers has been a Kiwi institution for more than a century. Established in 1909 as Laidlaw Leeds, in Auckland’s Fort St, Farmers has since expanded to more than 50 stores.