Foothold in Whangārei retail market

A freehold retail property with a well-entrenched national brand occupier, in a prime location on Whangārei’s main street, is for sale.

Leading footwear retailer Merchant 1948 – formerly known as Overland – has traded in Whangārei for over 20 years.

In 2021, Overland Footwear Company purchased the building at 14 Cameron Street to secure a high-profile presence in the country’s northern-most city.

The 384sqm store has exceptional frontage to Cameron Street, with full width doors retracting to provide a light and airy retail space with a stylish, minimalistic monochrome fitout, including polished timber floors.

There is storage on both the retail level and in the basement, and the property has undergone recent structural capital works to improve its seismic rating.

Now wanting to release some capital, Merchant 1948 will take a new 7-year leaseback over the premises with two further 4-year rights of renewal and fixed annual rent increases. The property returns annual net income of $93,359.

Overland Footwear is a third generation New Zealand owned and operated business, with 40 stores throughout New Zealand, under brand names Merchant 1948 and Mi Piaci.

The Whangārei property is for sale by deadline private treaty closing 22nd August, unless sold prior , through Henry Napier, Daniel Sloper and Alan Haydock of Bayleys.

Expected to appeal to local buyers and to investors from outside the region, Napier says the pivotal CBD position, tenant covenant and favourable City Centre zoning with development potential, underpin the investment credentials.

“The site clearly works well for the Merchant 1948 brand, having cherry-picked the store when looking to position themselves in Whangārei’s CBD retail market, and the long lease with guaranteed rental growth and renewals they have subsequently committed to,” he says.

“The lease has a guarantor, plus 3-percent annual rental growth and market reviews on renewal.”

Napier says the footwear segment of the apparel market benefits from having a physical retail presence as it streamlines fit issues, and staff are able to offer one-to-one customer service.

“In-store shopping still has in important role to play in the retail arena, and well-curated stores like Merchant 1948 have continued to trade well as they have a point of difference and offer customers an experience.

“Nationwide retail spending is fairly subdued, however signs that inflation is now trending downwards will have a positive flow-on effect for consumer spending.

Investors looking for opportunities north of Auckland will recognise the value that the Whangārei commercial market offers, says Napier.

“The price point is accessible and the rental returns are attractive. Additionally, the CBD zoning supports commercial activity at street level and residential or commercial footprint above so there could be future development potential for the subject Cameron Street property.”

- Supplied by Bayleys