"The lease is offering initial net annual rental income of $110,000, with the new owner benefiting from built in rental increases of three percent per annum."
Originally built in the 1950s, the property underwent a major refurbishment before Cotton On moved in, which included a new roof, lighting, painting, air-conditioning and floor coverings, he says.
"Cotton On has also undertaken its own extensive internal fit-out creating its trademark 'stores within a store' to showcase its various brands."
Since being established in 1991, Cotton On Group has grown to become one of Australia's largest global fashion retailers; it has seven brands in 17 countries employing over 20,000 people.
Late last year, the group announced plans to grow its New Zealand business by 50 per cent by the end of 2018. This would be achieved through opening additional stores and also via e-commerce, creating 900 new job roles in the process.
The group's ongoing investment in New Zealand is testament to the strong results the country continues to deliver, says Cotton On Group chief financial officer Michael Hardwick..
"New Zealand was the first international market we entered outside Australia back in 2006 and since then it has been the impetus for our global growth," says Hardwick.
"New Zealand is one of our top three performing countries globally and, as a result, continues to be one of the markets we look to when gauging customer reaction - whether it is new products and collections or new store design."
As part of its global growth strategy, the Cotton On Group is looking to add another 570 stores globally in three years to the end of 2018, taking its store count to over 1900 worldwide.
Chaudhary adds that Cotton On is among a variety of tenants which have recently established themselves in central Onehunga and include Seed, Bed Bath & Beyond and Anytime Fitness.
The building it occupies, which has an Initial Evaluation Procedure (IEP) seismic assessment of 70 per cent of New Building Standard (NBS) has over 12m of frontage to Onehunga Mall, the suburb's main retail strip, and is also located next to the Dress Smart shopping mall.
"It is in a sought after location due to its central position, accessibility and exposure to strong vehicular and pedestrian traffic flows," says Chaudhary.
"Properties along Onehunga Mall comprise predominantly character-style strip retail premises, some with offices or residential accommodation above. It could be possible longer term to add further floors to this single-level property, given its Town Centre-Onehunga zoning under the new unitary plan. This allows buildings up to 24.5 metres high, subject to resource consent.
"Auckland Council is encouraging upper-level residential development in town centres, with good access to public transport. Being within walking distance of Onehunga train station, this property would be well suited to that," says Chaudhary.
