High profile retail outlets go under hammer

The retail development on the corner of Lincoln Rd and Universal Drive in Henderson. Photo / Supplied

High-profile retail properties set on strategically positioned sites with good exposure to heavy traffic volumes are a feature of Bayleys' latest Greater Auckland portfolio auction.

Nicolas Ching, of Bayleys Auckland, is marketing a number of the properties in Howick, Papatoetoe, Manukau, Henderson and Mt Eden that are expected to catch the eyes of investors.

The properties include a 233sq m freehold unit title, one of 23 units that form part of the Lincoln North Shopping Centre, which is for sale through Ching and James Chan of Bayleys Auckland.

The Video Ezy outlet is on the highly visible corner of Lincoln Rd and Universal Drive in Henderson, and is adjacent to Pak'nSave and Mitre 10 Mega stores. The unit comes with a six-year lease until 2015 and is producing net annual rental income of $82,990 plus GST. Ching says the property will appeal to investors at all levels, particularly because of its long-term tenancy and the location.

"This is a modern retail development that has attracted numerous well known national and international brands," Ching says. "It is extremely well located on a prominent corner site, providing exposure to more than 47,000 cars a day." The shopping centre includes 236 carparking spaces.

Another freehold unit title in the Greater Auckland portfolio is one of 20 units in a single-level retail building at 69 Wiri Station Rd in Manukau.

Unit A is tenanted by the Wiri Station Bakery and Lunchbar, which has a four-year lease plus two four-year rights of renewal which would take the tenancy to 2022.

The annual rental income is $15,057 plus GST.

The 92sq m unit is situated on the north eastern side of Wiri Station Rd, a major thoroughfare passing through the Manukau City Centre. It is also being marketed by Ching in conjunction with Tony Chaudhary of Bayleys Manukau. Ching says the property would be suitable as an entry level investment or for investors looking to expand their portfolio.

On the market for the first time in 17 years is a two-storey freehold standalone building in Mt Eden.

The 310sq m building at 460-466 Dominion Rd comprises two retail shops, with residential accommodation on the second floor for both tenants. The property is tenanted by NZ Convenience Store and Cheuk Company which operates an oriental restaurant. The retail shops have a two-bedroom apartment above each store, and bring in a total annual rental income of $90,000 plus GST.

Ching, who is marketing the property with Chan and Quinn Ngo, also from Bayleys Auckland, says the property occupies a high profile location on Dominion Rd, and benefits from a large residential catchment and established shopping precinct.

"It has a sizeable landholding totalling 555sq m,and includes generous on-site carparking at the rear, which gives an investor the potential to add value through further developments to the site," he says.

The restaurant has a four-year lease with two four-year rights of renewal, and the store also has a four-year lease, with two four-year rights of renewal. Each lease produces annual rental of $45,000 plus GST.

Up for auction further south is a 300sq m building with five separate tenancies on a busy intersection at the southern end of Papatoetoe's retail strip, known as School Corner. Returning total annual rental income of $71,766 plus GST, the building is being marketed by Brice Clark of Bayleys Manukau.

"This property has been under the same ownership since 1979, and opportunities to invest in retail property in this tightly held area are not often available," Clark says.

Occupants include VIP Curries, an Indian takeaway and restaurant on a 14-year lease expiring in 2020, a Chinese herbal clinic, a beauty therapy clinic, and a hair salon. The remaining tenancy is due to begin operating a store selling kava shortly.

Another retail investment property up for auction is a 285sq m outlet occupied by the Malaysia Nyonya restaurant at 87 Picton St, Howick.

Luke Carran, of Bayleys Manukau, who is marketing the property with colleague Mark Pittaway says a four-year lease, with four four-year rights of renewal, is producing annual rental income of $41,500 plus GST.

Carran says the property is located in a prominent building on Picton St and other tenants include ANZ Bank, Benjarong Thai Restaurant, Fresh Coffee Company, Sirocco Hair & Beauty, Victoria's Of Howick, and Shilla Restaurant.

"Demand for retail space on Picton St is very strong, with few vacancies at present," he says.

All properties will be auctioned on August 17, except the Dominion Rd property which will be auctioned on August 31.