Landmark retail opportunity underpinned by national tenant

JLL has been appointed in collaboration with Colliers Northland to bring 44-46 Porowini Avenue, Whangārei to market for sale. The landmark 1.7ha site is subject to a long-term leaseback to Mitre 10 (New Zealand) Limited, New Zealand’s leading home improvement brand, with the occupying business operating as Mitre 10 MEGA Whangārei. This property is now on the market for sale by way of Deadline Private Treaty, closing 4pm Thursday 21st September 2023.

44-46 Porowini Avenue, Morningside, Whangārei features a net lettable area of 8,126 sqm made up of a modern large-format store and associated facilities including retail, garden centre, trade drive-through, café, offices, canopy, and yard area. The whole package sits on 17,171 sqm of freehold commercial-zoned land including ample customer car parking. Mitre 10 MEGA Whangārei, one of Northland’s premier large-format home improvement destinations, services a wide catchment across Whangārei city and the surrounding area.

JLL has been appointed alongside Colliers Northland to market 44-46 Porowini Avenue, Whangārei for sale by way of Deadline Private Treaty, closing 4pm Thursday 21st September 2023 (unless sold prior).

^{Tenant Mitre 10 MEGA Whangārei is a premier drawcard in the sale of 44-46 Porowini Avenue.}

Vendor and tenant Mitre 10 is selling to continue to fund its nationwide expansion of the Mitre 10 network. This property is being sold to recycle capital for a number of projects that will see the network expand and modernise over the coming years. Due to the high-value and strategic Whangārei location, Mitre 10 will remain the primary lessee and head tenant of the property upon sale.

The sub-tenant, operating as Mitre 10 MEGA Whangārei, has traded successfully since taking the store over in 2015. The store, which opened in 2012, is well-frequented and enjoys strong support from the local community.

JLL Capital Markets Retail Broker Harry Fergusson says the large-format retail sector in New Zealand has been a standout asset class for some time. Over the past few years, this has strengthened further with positive rental growth throughout the sector.

“It’s one of the most sought-after asset classes in the country and will continue to be, even more so in a well-located, high-growth city such as Whangārei” says Fergusson.

Beyond the sector’s strengths, JLL Capital Markets Director John Davies suggests the covenant with Mitre 10 as tenant over the coming 12 years, combined with strong underlying freehold land value, further cements this as a defensive investment.

“There will be a lease in place with Mitre 10 (New Zealand) Limited for a 12-year initial term from 2023, with further rights of renewal,” says Davies. “This gives the buyer income security from a growing business with solid foundations. A rare opportunity in the large-format retail class.”

Colliers Northland Broker Nigel Ingham adds the annual income of the holding tenant is a bonus when purchasing a property of this scale.

“When you combine a secure national tenant with annual net rental income of over $1 million, you have a sound investment for the next 30 years and beyond as you strategise the next opportunity for your property in this high-growth region.”