The building and three adjacent sites housing Bunnings in Cambridge – which has one of the township’ s longest-running leases – has been placed on the market for sale.
The Bunnings building which is contained in three titles, is located in one of Cambridge’s towns most sought-after and thriving locations - on the corner of Queen Street (State Highway One) and Lakes Street, less than 15 minutes from Hamilton.
The central location makes up part of the northern precinct on Cambridge’s busy arterial route and it is one of the most high profile locations in the area. Neighbours to the site include, Pizza Hut, Subway, McDonalds, Countdown and Mobil.
Bunnings is New Zealand’s leading retailer of home improvement and outdoor living products and a major supplier to project builders, commercial tradespeople and the housing industry, in New Zealand and Australia.
The Cambridge property is one of more than 320 warehouses, stores, trade centres and frame and truss centres within the Bunnings network operating across the two countries. Sales revenue across the 2014 financial year totalled AU$8.5 billion. As at 30 June 2014 there were 223 warehouse, 64 smaller format stores, 33 trade centres and three frame and truss centres operating across Australia and New Zealand. At 30 June 2014 the company employed 36,000 team members.
The retailer sits on three adjacent sites to be sold as one - one freehold site on Lake Street and two leasehold sites on Lake and Queen Streets. The building includes offices and amenities, warehouse, nursery, and a timber yard, with a total land area across the three titles of 6,852sqm. The three titles have a combined rating value of $4.22 million.
Under the existing terms the tenant will commence a ten-year lease from any sale’s settlement date, with three six-year rights of renewal. Meanwhile, the leasehold sites have a final expiry date of 2078. Fixed rental increases of two percent are included under the existing agreement. The total net annual rent for the properties is $298,931 plus GST, said Bayleys Hamilton salesperson Andrew Shaw, who is marketing the property.
“This is a well presented property with a first class tenant. The sale of the three sites on Queen and Lakes Streets represents an opportunity for a buyer to invest in a tenanted building in a prominent location,” said Mr Shaw.
“There is a shortage of good quality investment properties for sale in Cambridge in this price bracket so this building will appeal to a large range of potential investors.”
The Bunnings Cambridge building was purpose built for the tenant in 2009. Since then it has received ongoing upgrades and maintenance, and has a seismic assessment rating of 100 percent compliance with the building code. A large onsite car park accessible from Lake and Queen Streets can accommodate large numbers of vehicles
The central, high-profile location, thriving New Zealand DIY industry and growth of the region made the properties an attractive investment, said Mr Shaw.
“This property combines a busy, highly sought-after location and a long-term tenant that caters to the ever-increasing popularity of DIY with Kiwis, which adds further appeal to potential buyers. Due to its central location, the property receives excellent exposure and is well-frequented by shoppers and residents.
Recent spending figures show Kiwis spend on average more than $4 billion a year on hardware, building and garden supplies. The figures also show hardware stores continue to enjoy high growth in customer spending, said Mr Shaw.
“Cambridge is the largest and most affluent town in the Waikato, with a high proportion of residents working in nearby Hamilton. The 15-minute commute will soon become even faster with the new motorway due to be completed soon,” said Mr Shaw.
The biggest town in the Waikato region, Cambridge’s population has grown to 18,700, according to the latest Census figures. The region’s tourism market continues to flourish, with visitors drawn to the cycling velodrome, Lake Karapiro, the Waikato River, strong equestrian community, cafes, and renowned farmers’ market.
Bunnings Cambridge is contained in three titles, to be sold as one. It is being marketed for sale through a tender process closing on February 20.