ASB will take new three-year leases to the properties on settlement, with the right to renew for two further terms of three years each. Together, the five properties generate total net annual rental income of $785,532.
Allsop says property ownership is not part of ASB's core business objectives so the bank has elected to put the properties on the market and lease them back as part of its branch network. "It's a move that is well-timed given the demand for commercial property at the moment," he says.
Turner says smaller retail investments like these properties, which offer the opportunity to add value in the future, are very desirable to individual buyers.
"There is a large volume of money looking for a home in the commercial property market at the moment, given low borrowing rates and the strong returns available on property compared with other asset classes - so we expect to see a lot of interest in the auction room from purchasers wanting a stake in these busy neighbourhood centres."
The properties occupied by ASB Banks for sale are:
At 106-112 Karangahape Rd on the corner of K' Rd and Queen St within the Auckland CBD city fringe. The two-level character building on a 359sq m site houses an ASB branch on the ground floor and various upstairs tenants including Gianni Dental Surgery and office tenants.
At 412 Mt Eden Rd, at the northern end of the Mt Eden Village shopping strip. ASB Mt Eden occupies a single level building on a 825sq m corner site which includes 14 carparks.
At 583 Manukau Rd, Epsom, where the Greenwoods Corner character building is a well-known landmark. ASB leases retail and office space in the two-level building standing on a 353sq m site which includes three carparks.
At 37 Clyde Rd, Browns Bay, the ASB branch is situated in the centre of the popular Browns Bay shopping precinct. The two level building is on a 422sq m site with five carparks.
At 348 Hibiscus Coast Highway, Rodney, where ASB Orewa occupies most of the 766sq m corner property that includes six carparks. A local real estate agency is the other tenant.
"The properties offer the opportunity for the new owners to undertake varying degrees of refurbishment or development to increase their 'rentability' and income generating potential," Allsop says.
"This could include internal refits or more extensive redevelopment work," he says.
"We expect this potential, paired with the future viability of the properties as investments given the excellent locations, to attract buyers looking to purchase one property or several as a portfolio purchase."
The strong tenant covenant provided by ASB will be a further draw in the auction room, he says. "As far as tenant covenant goes, a bank such as ASB is a very attractive prospect to investors looking for sound commercial property holdings."
Turner says high-profile bank branch properties in suburban centres of this quality are not seen on the market very often. "These are high-profile properties in thriving locations, with the tenant well-established at the properties and serving a large local client base."
On offer
*For sale: Five buildings leased to ASB Bank branches.
*Where: Epsom, K' Rd, Mt Eden, Browns Bay, Orewa.
*Agencies: Colliers International and NAI Harcourts.
*Selling method: By auction at 11am on August 8.
*Where: Royal NZ Yacht Squadron, Westhaven
