There are very few Australian businesses whose advertising jingles have become a cultural phenomenon. National Tiles has generated the type of success seasoned marketers can only dream of, and Burgess Rawson have been appointed in conjunction with Killen Thomas to bring three of their properties to market.
The investments features include brand new, 12-year leases to an iconic business with 10 + 10 year options through to 2054, fixed 3% increases assuring rental growth, plus rare security with a 6-month bank guarantee.
Company founder, Frank Walker, established National Tiles in 1979. The icon of Australian FM radio has long promoted his National Tiles business on the airwaves. The infamous radio greeting has provided motorists across Australia, with a trip down memory lane.
More than just a business, National Tiles is a family. The core values are the company's compass: respect, teamwork, customer commitment, relentless improvement and of course innovation are what keep the brands position as the market leader in wall, floor tiles and hard surface flooring.
In 2021, National Tiles saw a record turnover with the group reaching S150 million and has boasted in excess of 50% growth over the last five years. With more than 42 years of experience, National Tiles is by far the largest family-owned tile company in Australia.
Today, National Tiles maintains a workforce of 500 employees over 38 stores nationally with imminent plans to rollout additional locations Australia wide.
It is the reputation of this iconic Australian business that will have investors vying for three high profile locations in Mitcham, Sunshine, and Grovedale (Geelong)  to be auctioned at the prestigious 150th Burgess Rawson Portfolio Auction on February 23. The properties  feature showrooms, offices, warehouses, and an abundance of onsite car parking and all provide brand new 12-year leases through to 2034 plus options through to 2054, together with fixed 3% annual rent increases - assuring growth.
Regraded as the flagship store, National Tiles Mitcham is strategically positioned on busy Whitehorse Road, and benefits from its central position in Melbourne's thriving eastern suburbs, ideally located with easy access to the CBD and Dandenong Ranges and a lucrative net return of S330,960 pa + gst.
National Tiles Sunshine offers a modern and flexible showroom, with 3,716 sqm freehold site in a prime position with exposure to Ballarat Road. A melting pot in the western suburbs, Sunshine has experienced a social transition, changing the mix of retail development within the suburb and it's surrounds. Provides a solid net return of S200,725 pa + gst.
The National Tiles site in Grovedale is the birthplace of the brand and located within Geelong's fastest growing region and boasts outstanding exposure to busy Surf Ccoast Highway /Torquay Road, an immaculate retail showroom, office and warehouse complete with rear access. The property is underpinned by abundance of leading retailers including Total Tools, Carpet Court and BBOs Galore and is offering an exceptional net return of S320,375 pa + gst.
Burgess Rawson Partner and listing agent, Raoul Holderhead said, "This is a rare opportunity to own the underlying asset of Australian icon with extremely landlord friendly leases and the ability to possess major metropolitan land holdings at affordable prices" He estimates yields in the range of 4.25% - 4.5%".
In the last five years, National Tiles has experienced double-digit annual growth bringing assurance to potential investors. The secure, "set-and-forget" lease structure sees the tenant responsible for outgoings as per the lease and offers strong and certain rental growth with annual, fixed compounding 3% increases.
While statistics such as a stock holding in excess of AU S40 million and annual sales of three million square metres of tiles, attest to the incredible success this family business has achieved; the past decade has seen important behind-the-scenes decisions innovate how the company is run. Hard work, passion and commitment has seen this family business from Geelong grow into one of Australia's leading tile and stone flooring supplier.
The sale of the National Tiles Mitcham, Sunshine and Grovedale will be handled by Burgess Rawson in conjunction with Killen Thomas via in-person, online or phone auction in the River Room at Crown Casino from 10.30am AEDT on Wednesday 23 February 2022.
For further details, contact listing agent Raoul Holderhead on 0413 960 304.
