The Royal Oak Medical Centre Ltd occupies two units in the Royal Oak Mall.
The Royal Oak Medical Centre Ltd occupies two units in the Royal Oak Mall.
A long established medical centre that has been in occupation in the Royal Oak Mall for over 20 years is among a number of retail investment offerings up for auction in Bayleys' latest Greater Auckland portfolio that are likely to sell for under $1 million.
Royal Oak Medical Centre Ltd occupies two units totalling about 200 sq m which are being offered for sale as one lot in the mall through Matt Lee and Oscar Kuang of Bayleys' international division. The property is among 21 offerings in Greater Auckland which will be auctioned on Wednesday, September 23, in Bayleys' central Auckland auction rooms unless they sell earlier by private treaty.
Lee says the well established Royal Oak medical centre provides a comprehensive range of primary health care services and is a member of ProCare, New Zealand's largest health care network encompassing more than 500 doctors in 200 practices.
"The property is self-contained with its own toilets and staff kitchenette at the rear, one of the few in the mall with these facilities," says Lee. "The premises have been fitted out to a high standard as professional medical rooms and benefit from the mall's 778 car parks."
The Royal Oak Medical Centre renewed its lease for three years in January and has one further three year right of renewal. The property is producing net annual net rental income of $61,500 plus GST with two yearly rent reviews to market.
The Royal Oak Mall has a mix of over 50 shops and is home to a wide range of international and national brands, such as Pak'nSave, Subway, ANZ Bank, Whitcoulls, TAB (Totalisator Agency Board), OPSM (Optical Prescription Spectacle Makers) and McDonald's as well as local businesses. The medical clinic is located near the lift on the mall's mezzanine level.
This unit at 270 Oteha Valley Road is leased to Oporto Albany Ltd.
"The property represents a quality affordable retail investment with the benefit of a long-standing tenant and two separate unit titles which provides future flexibility," says Lee.
Also for auction on September 23 is a 106 sq m unit in The Foundation convenience retail centre in Albany offering the next owner a long lease with built in annual rental growth. The unit is being marketed by Tony Chaudhary and Amy Weng of Bayleys South Auckland in conjunction with Simon Aldridge of Bayleys North Shore Commercial
The unit in the recently completed centre at 270 Oteha Valley Road has a 10-year lease to Oporto Albany Ltd from July 2014 with one five-year right of renewal. It is currently producing net annual rental income of $60,950.
Chaudhary says that income will increase each year because of annual fixed rental increases cent based on the Consumer Price Index plus one per cent. "That will provide rental growth ahead of the rate of inflation and there are also five yearly rent reviews to market incorporated into the lease."
Oporto was founded in Australia by Antonio Cerqueira who opened his first Portuguese-style chicken restaurant on Bondi Beach in 1986. The business now has over 180 stores offering 'fresh-not-frozen, grilled-not-fried chicken' plus burgers and has nine outlets in Auckland and Hamilton operating under a master franchise agreement.
The Foundation is a recently completed multi-purpose development on a corner site on Oteha Valley Rd, a main arterial running between the Albany Highway, the northern motorway section of State Highway One and Appian Way - a main link road to Westfield's Albany shopping mall. The Foundation has four street frontages in total and is next door to North Harbour Stadium.
The unit occupied by the Thai Mint licensed restaurant in Highland Park.
The centre comprises 22 tenancies encompassing a range of restaurants, food convenience businesses, service retailers, plus a childcare facility and gymnasium.
Weng says The Foundation is built to current building seismic standards and the tenancies are surrounded by a large number of car parking spaces accessed via three entry points.
A third retail unit to be auctioned on September 23 is a 100 sq m outlet occupied by a Thai licensed restaurant in Highland Park shopping centre in Pakuranga. It is being marketed by Oscar Kuang and James Chan of Bayleys' international division, in conjunction with Geoff Wyatt of Bayleys South Auckland.
The unit is leased to Thai Mint Limited for three years from June 2013 with one three-year right of renewal and is producing net annual rental income of $41,600 net plus GST.
Kuang says the unit has a Capital Valuation of $530,000 and this puts it well within reach of smaller investors - providing a good entry level opportunity into the commercial property market.
The property is located next to a Pizza Hutt outlet and is close to a recently completed redevelopment of a former cinema complex into a variety of new tenancies which has drawn a number of national brands. These include Coffee Club, Tank Juice, Pita Pitt and Anytime Fitness that occupy units with eight to 10-year leases in place, and sold earlier this year at yields of 5.4 to 7.8 per cent.
Kuang says given its shorter lease, the Thai Mint unit is expected to sell at a higher yield.
"The property is facing the drive in entrance to the shopping centre and has excellent exposure to high volumes of traffic coming into the centre off Pakuranga Road," says Kuang. "It is surrounded by an abundance of shared common car parking accessed from both Pakuranga Road and Dunrobin Place. Customers are drawn from a wide catchment area and a significant population base with the Pakuranga/Howick area consisting of close to 130,000 residents."
