This colourful property is leased to Appliance Shed at 75C Porana Rd, Wairau Valley. Photo / Supplied
This colourful property is leased to Appliance Shed at 75C Porana Rd, Wairau Valley. Photo / Supplied
A high-profile Auckland North Shore property, leased to national electronics retailer Appliance Shed, is for sale offering a buyer a split-risk investment with a long-term tenant.
Located in the tightly-held Wairau Valley commercial and industrial area, the showroom, warehouse and office building at 75C Porana Rd earns $372,564 per annum from several income sources.
Colliers International brokers Matt Prentice and Andrew Hooper are marketing the stratum-in-freehold property for sale by deadline private treaty closing on Wednesday, April 19.
Hooper says the property is part of the Epicentre Retail Park, an established retail complex on the northern side of Porana Rd.
He says the property has a net lettable area of 1182.53sq m spread across three floorplates, each with separate leases.
Appliance Shed's ground floor premises comprise a high-stud bulk retail showroom and warehouse of 1471.97sq m. The floor also has a small office and amenities area along with a vehicle-accessible goods delivery area at the rear.
Two fully refurbished offices of 168.07sq m and 243.57sq m each on are on the first floor.
The building has concrete floors, masonry plaster exterior walls, aluminium shopfronts and structural long-run roofing; and the site has 49 allocated car parks.
Appliance Shed is on a new nine-year lease backed by a bank guarantee and pays $287,000 annually. Two other four-year office leases bolster the income from the anchor tenant generating $49,564 and $36,000 per annum respectively.
Appliance Shed is a New Zealand owned and operated bulk retailer with five nationwide locations. It sells discounted appliances from well-known brands, with full local manufacturers' warranties.
The company underwrites the lease on the smaller office on site while the other is leased to Otoy New Zealand, an international cloud graphics company headquartered in Los Angeles. Otoy's Academy Award-winning software is used by leading visual effects studios, artists, designers, animaters, architects and engineers.
"The multiple income streams make this a good split-risk investment," Hooper says. "This is a hard-to-beat opportunity to buy a multi-tenanted investment underpinned by an established national anchor tenant. Vacancy levels in Wairau Valley are at historic lows, which makes this property a particularly attractive foothold in a sought-after area."
Prentice says the Porana Rd property is strategically positioned in the heart of Wairau Valley, between Wairau Rd and Sunnybrae Rd - two of the main arterial routes in the area.
"Along with Appliance Shed's striking bright yellow storefront, the site has strong exposure due to the relatively heavy flows of commuter, trade and retail traffic passing by every day."
The property is close to the State Highway 1 motorway interchanges at Tristram Avenue and Northcote Rd which give easy access to the rest of the North Shore, the CBD and the Auckland region.
The wider site was originally constructed as the Wilson and Horton Security Print plant in 1982.
In early 2005, the property, which is zoned Light Industry under the operative Unitary Plan, was converted and upgraded to eight unit titles across 11 tenancies in what is now known as the Epicentre Retail Park.
Prentice says there is scope for further conversion to smaller units, subject to planning consents, which would give the owner future flexibility.
He says Wairau Valley has transformed over the years from a largely industrial area.
"It is now a mixed commercial area with numerous trade and bulk retail tenants, alongside the established industrial tenants," he says.
"This shift has seen values increase and the location become increasingly popular."
Large national retailers located in the surrounding area include Pak'n Save, Mitre 10 Mega and Bunnings Warehouse, along other well-known brands in the Link Drive retail area.
Neighbouring tenants in the Epicentre Retail Park include PB Technologies, Direct Office Furniture, Relish Cafe, Silver Bell Supermarket and several other businesses.
