"This is an outstanding opportunity to acquire 1.78ha of prime development land on a prominent corner site within one of Auckland's fastest growing locations," Fraser says.
"The property comprises a neighbourhood shopping centre with 21 retail tenancies, a supermarket, an ATM and a cell site, all of which service the rapidly growing residential suburbs of Massey and Royal Heights.
"With a net passing income of $785,540, developers and land-bankers can draw on useful holding income while they make plans to unlock the site's maximum potential.
"Short leases with expansion or relocation clauses allow for imminent redevelopment, while the property's layout allows for staged development of the site."
Peterken says the shopping centre is between fast-growing Westgate and the increasingly popular residential suburb of Te Atatu Peninsula.
He adds that the site, zoning and structure of the leases ensure the property has abundant redevelopment potential.
"Because of this potential, the owners have not focused on leasing vacancies or maximising terms with existing tenants. This gives a new owner the opportunity to negotiate the lease terms.
"A combination of re-leasing and staging the redevelopment would allow the new owners to increase the holding income pending future redevelopment."
Herdson says the property's layout makes it well suited to a staged redevelopment, while its low site coverage and the potential for greater density allow for a variety of development types.
"Anchor tenant Countdown is signed to a short lease that allows the underlying land to be redeveloped imminently, underpinning the value of the property," he says.
"A buyer could also maximise the existing buildings and service infrastructure, perhaps looking to extend or supplement refurbished retail spaces with higher value residential development."
Herdson says that in addition to housing, the site would suit a variety of uses including childcare, retirement or additional retail units.
Coburn says the shopping centre is on an elevated site with views towards Auckland's northwestern suburbs.
"The large corner site sits at the confluence of Royal Rd, Moire Rd and Widmore Dr, with substantial road frontages on all three sides.
"The property's northeastern boundary is neighboured by residential development, which is forecast for significant intensification."
Coburn says the smaller of the property's two titles is at 41 Widmore Dr. It has a land area of about 7459sq m and a large 2459sq m building tenanted by Countdown.
The larger title at 138-144 Royal Rd has a land area of 10,412sq m and a total building area of 2628sq m comprising a single level, plaza-styled retail development.
Both titles have substantial areas of sealed car parking, providing space for 263 vehicles.
This equates to 5.25 car parking spaces per 100sq m of gross lettable area – a favourable ratio when benchmarked against similar centres.
An open basement car park is located below the supermarket building, making use of the land's contour.
The property has 16 tenants, including NZ Post, a locksmith, bakery, cafe, laundromat, liquor store, medical centre and restaurant.
There are eight vacant units totalling about 979.19sq m.
Most of the specialty retailers are local tenants with businesses focused on convenience for the immediate catchment."
The shopping centre was built in the late 1970s, while the supermarket was built in 1983 and a smaller building, tenanted by the locksmith, was built in 1995.
The original shops, which are generally linked by a covered veranda, have undergone several alterations since their construction. The supermarket underwent extensive tenant refurbishment in 2009.
All of the buildings meet 100 per cent of seismic standards, with the exception of the supermarket which has a 64 per cent New Building Standard rating.
This is not expected to have an impact on the property' value given that the supermarket is proposed for redevelopment.
Fraser says he expects strong inquiry from a variety of sectors.
