Affordable offerings in the suburbs

The Curry Mantra Indian restaurant in Hillsborough and two retail units in Ponsonby are on offer. Photo / Supplied

Smaller investors are well catered for with close to 40 properties going under the hammer at Bayleys Total Property commercial auctions in Auckland, Tauranga and Wellington next week with a number of properties expected to sell for well under $1 million.

Two retail tenancies on three separate freehold titles with a total land area of 477sq m at 713-717 Richardson Rd, Hillsborough are among a number of affordable suburban retail properties that are being auctioned in Bayleys' central Auckland auction room on Wednesday March 31.

The property is occupied by an Indian restaurant which has a six-year lease from March 2007 and a pharmacy that has a lease running until November 2012. They are producing combined total net annual rental income of $41,260.

The offering is part of a larger suburban commercial complex and comes with 10 common carparks and further parking at the rear.

Tony Chaudhary, of Bayleys Manukau, who is marketing the property with Nicolas Ching of Bayleys Auckland, says a feature is its surplus land which provides the potential to add value at some stage in the future

"This property would suit an astute investor looking for an affordable addition to an existing portfolio or someone keen to start a new one," says Chaudhary.

Two retail units totalling 40sq m, with four covered carparks, offer smaller investors affordable entry into popular Ponsonby Rd. The units at 68 Ponsonby Rd are leased to December Bride Boutiques Ltd which provides bride and bridesmaid dressing, make-up design and photography services. The property is producing net annual rental income of close to $41,000 which includes the lease of three of the carparks to other nearby tenants.

Bayleys Auckland's Henry Thompson, who is auctioning the units with Stuart Bode, says they have the attributes that retailers like - a high-profile address, good carparking and a substantial residential population within walking distance.

In Takapuna, a ground floor unit in the Sentinel building is up for auction though Simon Aldridge, Tony Ye and Terry Kim of Bayleys North Shore.

The 70sq m unit is leased to a drycleaner for six years from February 2010 at a current net annual rental of $28,000. In the same complex is a 180sq m unit, which is currently vacant, that had been sold prior to the Total Property auction for $688,000. The unit has a full commercial kitchen and an outdoor dining area and consent for food operation and sold to an owner-operator.

Further south, a 134sq m unit in the Highland Park retail and commercial precinct is for sale with a six-year lease from April 2009 to computer store PC Force Limited. It is producing annual net rental income of $52,000 per annum with two-yearly rent reviews, and is being marketed by Geoff Wyatt and Tony Chaudhary, Bayleys Manukau.

A 125sq m office unit, with three carparks, in a near-new architecturally designed office building at 49 Sainsbury Rd, St Lukes is also part of the Auckland Total Property auction. It contains two tenants, SB Law and Midpoint Investments, both on new three-year leases, each with one three-year right of renewal, producing total net annual rental income of $33,000.

Clint Barber, of Bayleys Auckland who is marketing the unit with David Gubb, says the property is in a popular location and comes with built-in growth with both leases containing two-yearly rent reviews to market or CPI. They are also auctioning 104sq m of office space at 41 Crummer Rd, Grey Lynn, producing net annual rental income of $35,000. It is part of an office building completed in December 2008 and is leased to event design and production company Production Associates Ltd for three years from October 2009.