Another unit on offer in Rotorua’s Redwood Centre

11:13 AM Saturday October 18, 2014 Colin Taylor

Exterior of retail unit for sale in Rotorua’s Redwood Centre leased to Liquorland and Don Kebab outlets.

A planned sell down of commercial units within urban Rotorua’s Redwood Centre retail and healthcare hub has seen a unit housing Liquorland and Don Kebab stores to be the latest placed on the market for sale.

The 4500 sq m Redwood Centre some three kilometres east of Rotorua’s central business district opened in February last year with 21 tenancies signing up to be part of the hub.

“Every unit within the Redwood Centre brought to market since has been snapped up by either Rotorua-based investors or several retail business owner/operators within the precinct,” says Mark Rendell of Bayleys Rotorua.

Rendell is marketing the single storey retail site leased to Liquorland and Don Keb outlets for sale by auction on October 31.

The individually-titled unit occupies 339 sq m on a corner site and generates an annual rental of $85,000 plus GST.

The Liquourland outlet occupies 208 sq m of the property and is on a six year lease through until 2019 with eight further three-year rights of renewal. The franchised outlet, owned by Foodstuffs New Zealand Ltd, is part of a nationally-branded formed in 1981 that now has 70 Liquorland stores nationwide.

The adjoining Don Kebab takeaway business occupies 131 sq m and is on a five year lease through until 2019 with two further five-year rights of renewal. “The Don Kebab store is a stand-alone operation which has just begun slicing and dicing its Mediterranean-styled wrap snacks at the Redwood Centre,” Rendell says.

Redwood Centre has communal parking for 205 vehicles and operates under a body corporate management structure.

All buildings within the development are constructed of tilt slab concrete with long run steel roofing and have certification for 100 per cent of New Building Standards (NBS).

Rendell says the continuing process of ‘drip feeding’ Redwood units onto the market is part of the developer’s business model.

Among the tenancies which have been sold are: Burger Fuel, the Anytime Fitness gym’, Domino’s pizza, the pharmacy and physiotherapy practice, Couplands butchery, Mt Tarawera Fruit and Vege’, and most recently, Bin Inn which sold at auction in July.

Most buyers of Redwood units to date have come from the Greater Bay of Plenty region, with one Auckland-based investor purchasing a premises.

“The 100 per cent sell down of the Redwood Centre to date means it has been among Rotorua’s most successful commercial project for decades - reflecting the sustainability and attraction of its location, the quality of a modern build, and the spread of tenants occupying the development,” Rendell says.

“The commitments to new, long-term leases by the existing tenants have underpinned the attraction of the property from a pure investment perspective. The building’s near-new age also means that there is minimal maintenance and certainly no modernisation budget requirements which have to be accrued for.

“From an investment perspective, the sites within Redwood really do tick all the boxes, and have shown to deliver excellent rental yields.”