Warehouse Stationery has long lease
Warehouse Stationery’s well established retail premises in Henderson is up for sale. Colliers International is marketing Unit H 111 Lincoln Rd, which is to be auctioned at 11am on Tuesday May 8, unless sold earlier.
Agent Shoneet Chand says the freehold in stratum unit is on a prominent corner within the thriving Lincoln Centre retail development.
“Warehouse Stationery has been a landmark tenant here for 20 years, making it one of the best-established retailers on Lincoln Rd.
Chand regards Lincoln Rd as arguably the most sought-after retail strip in West Auckland.
“The unit is surrounded by numerous other national brands including The Warehouse, Spotlight, Harvey Norman, Nood and Noel Leeming. This outstanding investment opportunity is offered with a seven-year lease returning $173,733 in net annual rent.”
Chand says the 1139sq m unit has been occupied by national tenant Warehouse Stationery since 1998. The current lease expires at the end of March 2024, after which there are two rights of renewal of three years each. The final lease expiry is at the end of March 2030.
Fixed rental increases of 5 per cent are locked into the lease, with reviews to take place in 2021, 2025 and 2029. The lease also includes CPI rental reviews to take place in 2019, 2023, and 2027.
Colliers’ Josh Coburn says the General Business-zoned unit offers future flexibility.
“Strategically positioned roller doors allow the unit to be split into two tenancies, providing the opportunity for split-risk income streams in the future.”
The unit is of solid construction with concrete foundations, floors, and tilt slab walls. The exterior features tilt slab concrete, aluminium joinery and long run cladding and roofing.
Service access is via high stud roller doors at the side and back of the building, while the main retail entrance is via double doors leading onto a veranda-covered footpath.
The unit is prominently positioned by an expansive shared customer car park.
Staff parking, shared with the other retail units, is located to the rear.
Coburn says the Lincoln Centre benefits from its own controlled intersection on Lincoln Road. A second entrance is via a right of way off Moselle Avenue.
“The Lincoln Centre is located only 2km from the State Highway 16 motorway interchange, making it easily accessible to Auckland’s CBD, which is only a 15-minute drive away at non-peak times.
Accessibility to and from Auckland Airport has also been dramatically enhanced with the recent completion of the Waterview Tunnel, which has put the airport within 30 minutes’ drive.”
Coburn says Lincoln Rd is one of the most popular retail destinations in Auckland, with high passing traffic of about 42,000 vehicles a day. The road serves a dense surrounding residential catchment, linking Swanson Rd to the south with the Northwestern Motorway (SH16) to the north.
“A primary link between the Henderson town centre and surrounding suburbs, Lincoln Rd is home to a mix of local and national retailers, commercial premises and residential dwellings.”
Colliers’ Craig Smith says Warehouse Stationery is a leader in the New Zealand retail stationery market.
“Part of the NZX-listed Warehouse Group, the brand has grown rapidly since its first store opened in Wairau Park, Glenfield, in 1991,” he says.
“Warehouse Stationery now boasts 67 stores nationwide, from Kerikeri to Invercargill. An online store, launched in 2001, also offers delivery and click and collect services.”
Smith says Warehouse Stationery’s point of difference is the larger format stationery supermarket concept, as opposed to smaller, traditional stationers.
It offers almost 20,000 products in numerous categories including office supplies, school supplies, technology, furniture, arts and craft supplies, and printer ink and toners. Extensive printing and photocopying services are also offered.
“Warehouse Stationery’s extensive range gives customers the convenience of buying all of their stationery, office products, furniture and technology from one outlet,” Smith says.
“It also offers competitive business to business services, with free delivery for online orders over $40 excluding GST, and an exclusive rewards programme.”
The company reports its annual sales growth figures are consistently well in excess of industry averages.
Chand says the unit for sale at 111 Lincoln Rd is a unique opportunity for investors to capitalise on Warehouse Stationery’s success.
“The strong tenant covenant is key to its appeal, along with its solid fundamentals, excellent growth location, and future uplift potential.”