Hiskens says the sale presents a number of options for investors and developers to purchase one or all of the titles. The four separate titles encompass eight tenancies along the Clyde Rd frontage, two rear commercial units and the large format retail space on Bute Rd occupied by New World..
"It comprises a total lettable area of 2317sq m with a net return of $786,230 per annum from a mixture of well established and national branded tenants on various terms," Hiskens says.
Tenants include Augenstein's Jewellers, with a lease dating from 1987, Paper Plus, Radius Pharmacy, Stevens Homeware, Bliss Ladies Fashion, UK Grocer, PZ Music and a shoe repair kiosk. The investment rental range for the retail shops is $136,560 to $168,700 per annum. Income from the New World supermarket is about $317,950 per annum net including "turnover rent" which is calculated as a proportion of the annual turnover of the lessee's business.
"The Bute Rd supermarket site has a significant add value opportunity due to the relocation of New World early in 2015," Hiskens says. "We expect it will attract strong interest for redevelopment, possibly into several smaller units to take full advantage of the prime positioning in the Browns Bay commercial area, or a mixed use development with residential units taking advantage of the extended height limits under the draft Auckland Unitary Plan. Retail is leading the way for private investors, with continued rental growth and low vacancies on the North Shore."
He says the area has already seen a substantial amount of property development around the main retail and commercial zones in the suburb. The former Palmers Garden Centre at 26 Anzac Rd, next to a Countdown supermarket, is being redeveloped into a retail and childcare centre with completion expected in August of this year.
New residences are also under construction including the Norfolk Apartments at 19-21 Bute Rd, which is a four-level mixed use complex encompassing 42 one to two bedroom apartments with secure undercover parking and two street front retail units.
"The construction of 42 new homes on Bute Road will provide a lot of additional foot traffic to the main shopping district and traffic flows along Bute and Clyde Road are already heavy seven days a week," Ryan says. "The Browns Bay village has a very good mix of retail shops, cafes, restaurants, apartments and the nearby beach attracts thousands of visitors year round. As further residential and retail development progresses, the shopping district will only get better."
The property is currently zoned Business 2, designed for suburban centres with a mix of business activities and food retailing. Under the proposed Auckland Unitary Plan it is zoned as a Business - Town Centre, with the aim to provide a balance in preserving quality of life while fostering new homes, jobs and economic growth. "The new zoning will help it continue to grow and develop as a significant centre of business," Hiskens says.
