Queenstown retail store sells for more than $5 million

SHARE

Discount chain The Warehouse has sold its Frankton store but is leasing it back.

The publicly-listed chain yesterday announced that its ‘red shed’ at Remarkables Park has been sold to an undisclosed local investor.

The sale price wasn’t revealed but it’s understood to be more than $5 million.

The sale was brokered by local Colliers International broker Mark Simpson.

Simpson says six offers were received by the August 2 deadline.

Three of the offers represented rental yields of less than seven per cent, which Simpson says shows strong demand for passive commercial investment.

The 3579sq m store, on a 8700sq m site, generates $465,270 in annual rental income.

A condition of the sale was that the property would be leased back to The Warehouse for a 10-year term with rights of renewal.

The rental will also be reviewed periodically during the lease term.

The Warehouse was one of the first retailers in Remarkables Park when it was built in 2000.

Meanwhile, Colliers International is marketing three other commercial properties in Queenstown – the Waterfall Building at the top of Shotover Street, a backpackers in Henry Street and a property in the Shotover Ridge Business Park in Glenda Drive.