 Asset Class: | Retail |
 Price: | $ 1758246 |
 Net Yield: | 6.50 % |
Net Yield - including solar strategy: | % |
 Property Market Status: |
Outstanding opportunity to purchase Unit 8, 42 Gravatt Road, comprising dual tenants in the coveted Fashion Island retail complex in Papamoa. Anchor tenant Cotton On commenced a new 10 year lease from 29 September 2020 for a final expiry date of 28 September 2030 with Armstrong Security having been in occupation of thier 40 sqm space since April 1st 2025. <br><br>Superb long lease tenure and such strong tenant covenant for you to purchase this prime asset with the utmost confidence. <br><br>The centre was extensively upgraded and refurbished in 2017, which also included the shopfront facade to create a distinctly recognisable destination shopping centre. Shoppers can easily find a park with the convenience of 122 car parks shared on site.<br><br>Investors can buy with the confidence of an A-grade seismic rating and low-risk construction materials.
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Is this lease a leaseback arrangement?
Tauranga is the second fastest growing city in New Zealand and has one of the country’s top performing regional economies.<br>Located 2 ½ hours drive South East of Auckland, Tauranga is home to approximately 161,800 people. It forms part of New Zealand’s economic Golden Triangle.<br><br>This area accounts for over half of the country’s economic output. In the 10 years to 2024, Tauranga’s economy grew at a compound annual growth rate of 4.8%. Over the same period, New Zealand’s economy grew by 3% pa.<br><br>Positioned ten kilometres east of the Tauranga CBD, Fashion Island is located in the Papamoa Town Centre; a large format retail development anchored by a Pak’n Save supermarket and a Mitre 10 hardware store. ANZ, TAB, Repco, KFC and a large medical centre all form part of the Papamoa Town Centre.<br>Located directly opposite this town centre is Papamoa Plaza, an indoor shopping mall, anchored by a Countdown Supermarket and The Warehouse.
Additional Location Information FileIn 1991, the first Cotton On store opened in Geelong. We called on family and great mates to work the shop floor and help out behind the scenes, giving us the kick-start we needed.<br><br>By the early 2000s, we were a staple in Aussie wardrobes. The go-to for effortless casual fashion and the latest trends. We were making fashion more accessible and fun. We were a young brand with big ideas, but we had our awkward teen years, too. Acid-fluoro and popped-collar polos were our versions of braces and questionable haircuts, a time we look back on fondly for its lack of smartphones.<br><br>Then, with the rest of Australia, we started to broaden our worldview. We started to look outside our bubble – travelling and connecting with what was happening around us. The more inspiration we found, the more we discovered about ourselves. Because of those early days, we know that some of the best plans are made over beers in the backyard. And so, beers were had, and plans were made again and again.<br><br>That’s what puts us on the map. 20,000 people. 8 brands. 22 countries. 1,500 stores (and counting) and one life-changing Foundation.
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Unit 13, Fashion Island - Cotton On Kids - 251 sqm - $454 / sqm Unit 14, Fashion Island - Converse - 275 sqm - $412 / sqm Unit 10, Fashion Island - Deejuba - 166 sqm - $434 / sqm
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<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);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Returning $114,286 across two leases. Cotton On the anchor tenant is returning $87,739 Net + GST & OPEX and Armstrong Security is $26,547 Net + GST & OPEX</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Net Yield of 6.5% at Rethink Negotiated Price</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Building extensively refurbished in 2017 including an upgraded facade</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Good seismic rating of 80% of NBS (The building was designed in 2005 using a Soil Class C for the site and had a rating of 100% NBS. In 2016 Tauranga City Council advised that all sites in the Tauranga area were to be considered Soil Class D)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Total NLA of 315 sqm with a floor area of 175 sqm ($501 / sqm) for Cotton On and 40 sqm ($658 / sqm) for Armstrong Security</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Fixed 4% Annual Rental Reviews on both tenancies</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);font-style:normal;"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">The Cotton On Tenancy is currently slightly over-rented but this will balance in the future due to their commitment to the location (Two other complimentary stores)</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">The complex is 100% leased to a mix of well-known Australasian brands</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Excellent on-site parking with 122 shared car parks for the centre</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Fashion Island is Tauranga and the Bay of Plenty’s only outlet shopping centre</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Located in a rapidly growing residential catchment area</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Established retail destination - anchored by Pak’n Save, Mitre 10, Countdown and The Warehouse</span></p></li><li style="list-style-image:none;color:rgb(51, 51, 51);"><p style="display:inline;"><span style="color:rgb(51, 51, 51);font-weight:normal;font-style:normal;">Exclusive use rights to operate as an outlet shopping centre</span></p></li></ul>
