Investors’ eyes are on Palmerston North as a popular bulk retail shopping complex, fully leased to big-brand retailers and anchored by Harvey Norman, goes up for sale on a prime CBD-fringe site.
Positioned on busy Rangitikei Street, the modern large-format retail premises encompass two buildings, with plenty of customer parking and dual street access.
Alongside Harvey Norman, the site is home to linen and manchester specialist Bed Bath and Beyond, clothing store Postie and import wholesaler Uncle Bills.
The tenancies generate a total net rental return of $864,586 plus GST per annum, with built-in CPI rental growth.
The freehold land and buildings at 210-234 Rangitikei Street, Palmerston North, are being marketed for sale by Deadline Private Treaty closing on Friday 11 August, through Karl Cameron and Angus Findlay of Bayleys Palmerston North.
Cameron said the property was expected to attract interest from buyers nationally.
“The presence of four heavyweight retail tenants, on excellent lease terms, in a city-fringe location which is a proven bastion of big-name retailers, will put this site on the radar of commercial property investors,” he said.
The property for sale encompasses two modern, well-maintained buildings of some 4,082 square metres on approximately 8,094 square metres of freehold land. The property offers a total of 107 customer car parks.
The buildings have an A-grade Initial Evaluation Procedure seismic rating of 100 percent of NBS.
More than 70 metres of frontage to Rangitikei Street, doubling as State Highway 3, provides the site with high-profile exposure to some of the city’s busiest traffic flows.
Cameron said a key attraction of the Rangitikei Street site for commercial property investors was the sheer quality of the tenants.
Harvey Norman is an ASX-listed retailer which, as of 2022, had over 300 stores in Australasia, Europe and South-East Asia.
With 57 stores nationwide, Bed Bath and Beyond is New Zealand’s only specialist retailer of linen and manchester related products.
Postie, formerly known as Postie Plus, is part of ASX-listed Best & Less Group, which operates over 250 stores and employs more than 4,000 people across Australia and New Zealand.
New Zealand owned and operated cut-price wholesaler Uncle Bills opened its first store in Palmerston North in 2007, and now has outlets across the North Island.
Cameron said the property was surrounded by similar complexes and big nationally recognised and respected retailers such as Noel Leeming, Mitre 10 Mega, Countdown, Lighting Plus, Storage Box, and Supercheap Auto. It is the bulk retail centre of the city.
“The Manawatu region as a whole is flourishing, thanks to a buoyant rural sector and massive infrastructure spending. Some $8 billion of new infrastructure is planned in the region.
“Major projects include a $400 million regeneration plan involving Defence Bases at Linton and Ohakea, Mercury Energy’s $450 million Turitea wind farm, $184 million of planned capital spending at Massey University, and a planned $200 million KiwiRail Regional Freight Hub,” Cameron said.
“Quality counts and quality will always look after you. This property has it in spades.”