Who said there is no money on commercial ? It goes to show the sort of money that is still out there and why bank deposits are not so attractive any more . The yield of 6.9% is very low considering the size of the deal . It goes to show how different commercial investment is to residential and the sorts of profits that can be made. If you want to learn about commercial investment give me a call.There are plenty more deals out there in price ranges you can afford.
Published 28 August 2012
The Warehouse Group Ltd said yesterday it expects to realise $117 million from the sale of 4 properties, generating a pre tax gain of $62-64 million which would be ploughed back into the business.
Biggest of the group is its 21.7ha North Island distribution centre at Wiri, sold to the Accident Compensation Corp for $90 million and leased back to The Warehouse for 20 years, with rights of renewal. The new lease starts at $6.2 million plus gst/year, which puts the transaction on a 6.9% yield.
The centre distributes general merchandise to 57 stores and also sends consumables & apparel to The Warehouse’s whole network of 89 stores.
The sales of the distribution centre and the stores at Palmerston North & Queenstown are unconditional and a third store, at Snells Beach, is under a conditional contract. All will be leased back to The Warehouse for 10-year terms with rights of renewal. Colliers International handled all the sales, and all went to local investors.