Bakery and café building attracts investors

Media Release
25.06.2012
Bakery and café building attracts
investors with spare dough

The building housing one of Northland’s most productive boutique bakeries has been placed on the market for sale.

The single level property on Kerikeri Road on the outskirts of Kerikeri’s central business district hosts one of the region’s biggest cafes – serviced by a bakery at the rear of the premises and a full commercial-grade kitchen.

The building is being jointly marketed for sale by negotiation through Bayleys Whangarei and Bayleys Kerikeri with salespeople Ross Blomfield and Chester Rendell handling the process.

Mr Blomfield said the stand-alone freehold building on 756 square metres of land was constructed in 2004, and was located on the main road into Kerikeri, just 500 metres from the centre of town.

The building is occupied by two tenants – a large bakery/café, and a commercial services business providing internet computer access as well as design/print and photocopying logistics.

The bakery and adjoining retail outlet occupy 426 square metres of the site, while the copy centre has a 141 metre footprint. Mr Blomfield said the café had indoor/outdoor seating capacity for up to 80 people, operated seven days a week, and had its own 64square metre office on a mezzanine floor.

Kerikeri Bakehouse has a six year lease in place – expiring in 2017 with a further six year right-of-renewal – generating annual rent of $110,712. The second tenant is Antix Copy Centre which has a four year lease expiring in 2014 with a further four year right of renewal, and generating $30,000 per annum. The property has a Far North District Council valuation of $1.125milllion.

“One of the big benefits of this site is the extensive amount of car parking space available immediately in front and rear of both premises – with room for a total of 30 motor vehicles,” Mr Blomfield said.

“While Kerikeri is renown for being part of the ‘Winterless North’ there have been known to be occasional days when it rained…. sometimes for even a few hours. And when it does rain, people heading out for a cooked breakfast, coffee and muffin, or a filled roll and pie for lunch, certainly don’t want to walk far from where they park.

“Additionally, the café has a loyal clientele among many of the more ‘senior’ members of Kerikeri’s population who, because they are somewhat frail and may require the assistance of walking aids, appreciate the convenience of only having to stroll a few metres from their vehicle to the café.”

Mr Blomfield said the café’s spacious interior was a similar attraction to those customers who often felt claustrophobic at some of the town centre’s more ‘compact’ dining locations.

“The modern interior décor at the Kerikeri Bakehouse is light and airy, while the al-fresco courtyard which is shrub-lined on the road side, offers a peaceful setting to those enjoying their food and beverage.

“For those reasons, as well as the fact that it bakes a pretty mean selection of traditional Kiwi pies and pastries, Kerikeri Bakehouse has built up a loyal clientele of patrons – which is why the business is so keen to continue on in this location.”

Mr Blomfield said the concrete-floored premises was built of coloursteel cladding over timber framing, with feature stone columns facing toward the street frontage, and coloursteel roofing.

“Commercial investment premises of this size and quality so close to Kerikeri’s central business district are a rarity,” Mr Blomfield said.

“And when combined with such a cornerstone tenant holding a long lease, which has a substantial investment in plant and fittings, the opportunity to purchase this building should be attractive for medium-sized investors looking for a regionally-based income generation source.”

© Scoop Media