Bunnings Warehouse Takanini has been sold for $26.5 million following a strong response to the tendering of the property.
The 10,433m² building on a 1.7ha corner site at 167-173 Great South Rd was opened in December 2013 and has been sold with a new 12-year lease back to Bunnings at a 5.24% yield through Dave Stanley, James Chan & Tony Chaudhary of Bayleys Real Estate. It was the first Bunnings Warehouse property in Auckland to be offered for sale this year.
Mr Stanley said: “The property attracted very strong interest, with a large number of tenders received from Auckland & Wellington-based investors as well as from offshore parties. The low yield achieved for the property reflects a combination of factors that made it a very compelling investment. These included a high quality, modern building located on a very high profile site in one of Auckland’s fastest growing areas, with a long lease to one of Australasia’s best retail covenants.”
Bunnings’ New Zealand general manager, Jacqui Coombes, said the sale was in line with the group’s long-term strategic approach of releasing capital on lease terms which provide flexibility to Bunnings from an operational perspective, while providing investors with exposure to high quality retail properties backed by the strength of the Bunnings covenant.
The area around the store has developed into a significant retail precinct occupied by numerous national & international brands. Nearby neighbours include Countdown, Pak‘n Save, The Warehouse and a host of smaller retail & convenience stores, many of them in the Southgate Shopping Centre & Takanini Village.
“Takanini has experienced significant expansion in the last 5-10 years and that growth looks set to continue with a second stage of retail development planned for Takanini Village and 469ha of land zoned future urban under the unitary plan which could accommodate up to an estimated 4500 new dwellings,” Mr Stanley said.
Attribution: Agency release.