Black Friday: Bunnings closes $ 49.2 million Mt Roskill department store, cites earthquake risks

On this Black Friday retail bonanza day, Bunnings suddenly closed a $ 49.2 million Auckland department store after receiving engineering advice on seismic issues.

A statement recently issued from Australia described problems at the property, owned by the NZX-listed Investore Property, run by Philip Littlewood.

“Bunnings will temporarily close its Mount Roskill store after receiving advice from engineers that raised concerns about the seismic resistance of the car park. Based on that advice, we have made the decision to close the store until further notice while we work on the next steps with our owner and engineers, “said the retailer.

The company “sincerely apologizes” to all Mount Roskill customers for the inconvenience, however, customer and equipment safety is their primary consideration.

“During this period, Bunnings business customers will continue to be served through their account managers and retail customers will be able to shop at nearby stores or online and have items delivered to their homes,” he said.

Investore said in its latest report: “With respect to the property at 2 Carr Rd, Auckland, Bunnings plans to undertake a commercial area expansion and associated improvements in conjunction with planned SPL-funded seismic upgrades.”

That was a reference to Stride Property, a partner business listed on NZX, trading today at $ 2.30.

“Investore will contribute approximately $ 6 million for expansion and improvement works with the rental of associated improvements and a new 10-year lease upon completion,” the statement read.

In its latest semi-annual report, Investore listed 2 Carr Rd as valued by Savills at $ 49.2 million, making it the most valuable company in a portfolio of $ 980 million.

Bunnings NZ Director Jacqui Coombes said: “We are sorry to have to close the store until further notice, but we have to make sure our stores are safe for the team and customers and we thank customers for their understanding.

“We are making sure our equipment is well cared for during this time and will relocate it to nearby stores or offer individual options that work for them. We are working with our owner and engineers on the next steps and will update our customers and the community as soon as we can.

“Retail customers can continue to shop with us at Manukau, Gray Lynn, Mount Wellington or New Lynn stores or online by selecting one of these stores as their closest store on our website and the items will be delivered to their homes,” he said. .

Investore only bought the big Bunnings for $ 48.5 million about a year ago, bought from their associate Stride. Consultants Northington Partners conducted an independent evaluation of the deal in December 2019.

The $ 140.7 million purchase of Bunning and two other properties was financed in part by a $ 65 million underwritten share placement and a $ 12.7 million retail offering.

The deal was fair to shareholders of both supplier Stride and buyer Investore, Northington concluded. Under its terms, Stride agreed to “certain seismic strengthening work,” the consultants said.

Investore shares are trading today at $ 2.20, giving that company a market capitalization of $ 809 million.