Buyer could clean up with car wash business

The Wairau Rd Washworld site has redevelopment potential. Photo / Supplied

The Washworld car wash business at 62 Wairau Rd in Wairau Valley is to be sold as a going concern early next month along with its prime freehold corner property on one of the North Shore's busiest intersections.

Washworld and its land will be auctioned at 11am on Tuesday, October 8, at the offices of Colliers International at 129 Hurstmere Rd, Takapuna.

"The property is a local landmark," says Colliers broker Matt Prentice, who is marketing the business and site with colleague Jimmy O'Brien. "It has been a Washworld for the past 22 years, a long-standing and familiar sight in a tightly held market," Prentice says. "Its sale as a going concern presents a significant opportunity for a buyer to generate strong holding income from the car wash operation and/or pursue the excellent redevelopment potential of the site."

Originally developed as a service station in the 1960s, the Washworld facility was built in the 1980s. In 1998, it was extensively upgraded to its present configuration of a nine-bay wash and vacuum complex.

The site totals 1601sq m, of which 1436sq m is the net lettable area after 165sq m was acquired for roading by North Shore City Council in July. The total covered area is about 360sq m.

The Washworld car wash business was established in 1984 by Bruce Maiden, a pioneer of the car washing industry in New Zealand, after he established over 50 Tom Thumb drive-through automatic car washes for Shell sites throughout new Zealand beginning in the 1970s.

He also designed, owned and operated up to 12 automatic conveyorised car washes, called Rubadub. Rubadub at Mobil in Manukau Rd still operates.

The first Washworld site was located on St Lukes Rd, across from the St Lukes shopping centre. Next was Lincoln Rd, Henderson, followed by Wairau Rd in 1987, with a Greenlane site established shortly afterwards.

Washworld is in a prime road-front position on the southeastern corner of Wairau Rd and Archers Rd, within 500m of the Tristram Avenue SH1 motorway interchange. This places it within the established Wairau Valley industrial estate on Auckland's North Shore.

"The area continues to undergo transformation and will always be an attractive and strong location," says O'Brien.

"Wairau Valley is predominantly a traditional industrial and service business environment, although the area is in transition from industrial to retail, with an increasing level of bulk retail activities through new developments and also the refurbishment of older existing buildings. Most of the area is zoned Business 9 or Business 10, which allows for both commercial and industrial sites in certain circumstances.

"In addition, Wairau Rd is the main arterial route through Wairau Valley. The high volume of traffic passing through every day, in excess of 40,000 cars, has made it ideal for retail showrooms to attract customers, rather than having heavy trucks pulling out on to a busy road. "The dual access that the property at 62 Wairau Rd has onto Wairau Rd and Archers Rd compounds its possibilities."

According to Colliers' latest research, Wairau Valley precinct comprises 42 per cent of the industrial stock on the North Shore. Vacancy levels in this area have remained below 5 per cent since 2001 and are currently 4.6 per cent.

Prentice says a lack of sites suitable for industrial development in the area is the cause of recent so-called "brownfield redevelopment", or the recycling of redundant properties, which is becoming increasingly common in Wairau Valley.

"For example, Bunnings has purchased the former Morgan Furniture site on Archers Road and the 3M site between Wairau Rd, Archers Rd and Poland Rd, while Pak'n'Save opened a new supermarket next door to the Washworld in May this year.

"There are signs all this activity is reinforcing the location, with rumours that a number of businesses are trying to secure premises at the top end of Porana Rd."

Prentice anticipates high levels of interest in the property. "Owner occupiers, investors and developers alike will all see the considerable potential of this property. Not only is the business on the site an established and successful operation generating consistently strong income, but the busy corner location lends itself to redevelopment potential as this popular area evolves."

"The current owner enjoys the benefit of a 24-hour 365-day a year cash business. "Set up as a reasonably hands-free vending business, the buyer could also enjoy running a low-risk business without bad debts or chasing debtors, and employing minimal staff."