Rethink Investing

Retail | 11 Victoria Street Timaru 7910 New Zealand

Key Information

Asset Class:	Retail

Price:	$ 13000000
Net Yield:	7.00 %
Net Yield - including solar strategy:	%
Property Market Status:	On Market

Introduction

Rethink Investing are privileged to present a rare opportunity to secure an impressive investment property in one of New Zealand’s regional growth centres. 11 Victoria Street is situated in central Timaru, South Canterbury’s rural and regional support centre. This property holds an incredible land holding that future proofs the asset for future development and has already had international interest from a leasing perspective, this provides further comfort to the future certainty around the creation of a generational asset. The building has a seismic rating of 100% of the New Building Standard and is 100% occupied by The Warehouse and Urban Cafe. It’s located approximately 200m from State Highway 1 along with other retailers including Woolworths, Farmlands and Repco. The property has a floor area of 6,656sqm (more or less) on freehold titles of 16,209sqm including 2,024sqm of car parking that may be surplus to the tenants’ requirements. With a 7.6 year WALT, this is an opportunity not to be missed

Background Information

How old is the asset?

The original building was constructed circa 1994 with various additions since then with the latest being approximately 1,500sqm of warehouse floor area and the cafe in 2011. In 2021 the building was strengthened to 100% of NBS

Vendor's reason for selling?

Cashing Out

Days property been on market?

Is this property strata titled?

Are the seller and tenant related parties?

How long has the current tenant been on site?

Since 1994

How long has the tenant been in business?

Years

Is this property in a flood zone?

Is this lease a leaseback arrangement?

Additional Information File

Location on Map

The Warehouse on Victoria Street is a long established and iconic retail store in central Timaru. The Warehouse anchors the site with Urban Cafe as the second tenant. The property is lies between Browne Street, Heaton Street and Victoria Street and across Victoria Street to the east is Woolworths and to the north there’s a medical centre. The property is about 400m from Timaru’s central business district. Timaru’s business landscape is diverse and dynamic, reflecting the town’s strong economic foundation and growth potential. Timaru has a robust primary sector, including agriculture, forestry, and fishing supported by the national rail network and PrimePort, Port of Timaru. The region is known for its dairy farming, sheep and beef farming. The town hosts several manufacturing and processing businesses, particularly in the food and beverage industry. Timaru’s retail sector is well-developed, with central Timaru a well established shopping centre offering a wide range of products and services. Timaru Hospital is also a major healthcare provider in the region, and the region supports a number of primary and secondary schools. Through Venture Timaru, the town continues to attract new businesses and entrepreneurs, contributing to its vibrant and thriving economy.

Additional Location Information File

Tenant Information

Founded in 1982 and currently operating 90 sites nationally (as at 2021), The Warehouse sells items of essential use – sport equipment, gardening equipment, furniture, and so on. As a result of their branding and the distinctive colour of their buildings, The Warehouse’s stores are colloquially known both within the organisation and within New Zealand as “Red Sheds”. They compete mainly with Kmart in the discount department store sector, as well as a range of more specialised retailers such as hardware stores Mitre 10 and Bunnings Warehouse, automotive parts retailers Repco and Supercheap Auto, and electronics and homewares retailers such as Farmers, Harvey Norman and JB Hi-Fi. The Warehouse is a subsidiary of NZX listed The Warehouse Group which is the largest retail group operating in New Zealand.

Additional Tenant Information File

Financial Overview

Initial Term:

Security:

Security Info:

Lease Summary – The Warehouse Limited Lessee: The Warehouse Limited Area (sqm): 6,476sqm (approximately) plus shared car park Term: Ten (10) years, two (2) months and twenty-one (21) days Term until next renewal: 7.97 years Rights of renewal: Three (3) rights of five (5) years each Final expiry date: 29 February 2048 Net passing income: $854,424.00 per annum plus GST and outgoings Rental Reviews: Three (3) Yearly of Anniversary of Commencement - Market Review or CPI Review or 3% Increase (Lowest of the three*) Next Due December 8th 2025 *Cannot be lower than the previous periods rental income Lease Summary – Urban Catering Lessee: Urban Catering T/A Urban Cafe Area (sqm): 180sqm (approximately) plus shared car park Term: Three (3) years Term until next renewal: 2.41 years Rights of renewal: Three (3) rights of three (3) years each Final expiry date: 8 August 2036 Net passing income: $55,120.00 per annum plus GST and outgoings Rental Reviews: Market Reviews: Next due 9th August 2028 then two yearly * As at 13 March 2025 RENTAL COMPARISONS:

Additional Financial Information File

Special Conditions (if any)

Initial Term:

Security:

Security Info:

Rental Comparison

See Above Image

Offer To Purchase

Offer To Purchase:

13000000

Initial Deposit:

1300000

Due Diligence:

days

Finance:

days

Settlement:

days

Download Write Up PDF

View Your Estimated Rental Yield

Disclaimer: The depreciation figures provided are based on specific circumstances and may not accurately reflect your current financial situation. These figures are intended for informational purposes only and should not be construed as financial or tax advice. Individual financial situations can vary widely, and the applicability of these figures to your personal circumstances may differ. It is strongly recommended that you consult with your usual taxation adviser or a qualified financial professional/accountant to verify this information and obtain personalised advice tailored to your specific financial situation. Neither the provider of this information nor any of its affiliates shall be held liable for any decisions made based on this information without proper consultation with a professional adviser.

Key Highlights

<ul style="list-style-type:disc;list-style-position:inside;padding-inline-start:20px;"><li style="list-style-image:none;color:rgb(51, 51, 51);">Anchor Tenant - The Warehouse with the added bonus of Urban Café </li><li style="list-style-image:none;color:rgb(51, 51, 51);">Annual Net Rental $909,544 plus GST</li><li style="list-style-image:none;color:rgb(51, 51, 51);">Two separate tenancies over a floor area of 6,656sqm (approx.) on freehold titles totaling 16,209sqm of land</li><li style="list-style-image:none;color:rgb(51, 51, 51);">WALT of 7.6 years</li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;">Slightly under rented - Potential for upside </li><li style="list-style-image:none;color:rgb(51, 51, 51);">Long Established Location for The Warehouse brand</li><li style="list-style-image:none;color:rgb(51, 51, 51);">100% NBS Seismic Rating</li><li style="list-style-image:none;color:rgb(51, 51, 51);">Mixed Use zoning under the Proposed Timaru District Plan</li></ul>

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How old is the asset?

Vendor's reason for selling?

Days property been on market?

Is this property strata titled?

Are the seller and tenant related parties?

How long has the current tenant been on site?

How long has the tenant been in business?

Is this property in a flood zone?

Is this lease a leaseback arrangement?

Initial Term:

Security:

Security Info:

Initial Term:

Security:

Security Info:

Offer To Purchase:

Initial Deposit:

Due Diligence:

Finance:

Settlement:

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