Rebel Sport and Noel Leeming stores included in Hastings big-box retail sites for sale

Big-name properties at the Hastings Park Mega Centre for sale. Photo / Supplied

Hastings' biggest retail property portfolio is up for sale, with four big-name outlets at the city's main big-box retail park included in the deal.

The four properties, all at the Hastings Park Mega Centre on Karamu Rd, comprise the Clearance Shed, Briscoes/Rebel Sport, PETstock and Noel Leeming, which combined, generate an annual net rental of $1.359 million plus GST.

The four tilt-slab big-box premises are being jointly marketed for sale by tender through Bayleys Auckland salespeople Mike Houlker and Sunil Bhana, and Bayleys Hawke's Bay salesman Rollo Vavasour, with tenders closing 4pm, August 8.

"This is certainly the biggest single retail sell-down in the Hawke's Bay which anyone in the office can remember for decades," Vavasour said. The four properties, all owned by a small New Zealand-owned company with directors in Hawke's Bay and Auckland, can be tendered for individually, as one entire lot, or in any combination of single properties.

The four sites each have a one-sixth share in 7452sq m of land which has vehicle access and common carparking areas as part of the greater Park Mega Centre. Under Hastings District Council's site-specific Mega Centre Development Concept Plan guidelines, all large format retailing and commercial premises must have a minimum floor area of 1000sq m, while food and beverage premises permitted on sites with a minimum floor area of 100sq m.

Houlker said the quality and age of the four Karamu Rd North buildings, combined with their location as pillars of Hastings' foremost retail location, made them attractive investment options.

"A major factor now in the Hawke's Bay commercial property market is the age and construction buildings and their seismic strengths as insurance premiums for some pre-1935 structure has increased substantially if they have low NBS ratings," Houlker said.

"The four properties are all developed with modern large format high-stud open-plan retail buildings situated towards the southern and western end of the Park Mega Centre. "All the current rents with the four tenancies are below comparable market levels. As the lease terms progress, the initial rental levels are stepped or at a fixed percentage increases - which will be attractive to potential purchasers."

Bhana said the four Karamu Rd North premises were in stark contrast to other opportunities on the market in Hawke's Bay

"Generally, tenant demand for older commercial property in Hawke's Bay's major conurbations has been low." "Conversely, demand for good quality commercial property such as these Karamu Rd North premises is strong – with a good volume of sales transactions and lowering yield levels." The marketed premises are located on the larger retail park, which is also used by other large format retailers The Warehouse and Kmart, as well as Kathmandu, Wet & Forget, Godfreys, and Mitre 10 Mega.

The greater park is situated on what was formerly the Nelson Park athletics track and grandstand.

The sale of the land, then owned by Hastings District Council, was settled in 2008 for $18.6m.

"The Park Mega Centre has brought the large format retailers together into one central location within Hastings, creating a connection to the central city and providing a positive impact on the local economy with locals and visitors spending their money in Hastings, while at the same time employing many locals," HDC economic development and urban affairs committee Damon Harvey said.

"An added benefit is that we now have an enhanced and attractive northern entrance into Hastings via Karamu Rd."

Briscoes and Rebel Sport are both part of the NZX-listed Briscoes Group – with 57 Briscoes stores around New Zealand, and 33 Rebel Sport outlets. Noel Leeming is New Zealand's leading consumer electronics and appliances multi-channel retailer – with 79 stores nationwide.

The New Zealand-owned Clearance Shed chain first began trading in New Zealand in 2009 and now has 11 stores nationwide selling domestic household products.

PETstock is an Australian-owned company with 11 sites throughout New Zealand selling grooming, feed, training and cage housing products used by pet owners.