Strong covenants on units

The units at 301-307 Lincoln Rd, Henderson.

Brokers say four brand new tenanted freehold units for sale in one of Auckland's most sought after retail precincts are a chance for investors or family trusts to secure strong long-term assets.

Colliers International brokers Shoneet Chand, Peter Kermode and Craig Smith are marketing units A5, A7, B3 and B5 at 301-307 Lincoln Road, Henderson. The properties are for sale individually by auction on October 20, and offer a mixed range of investment returns to choose from.

"The strong tenant covenants make these deals extremely desirable, complemented by their prime location and detailed design of the overall development," Chand says.

Mexicali Fresh is opening its 17th national restaurant at this address, committing to an 8-year lease with two further rights of renewal of six years each, and returning $96,000 per annum net plus GST. Flame Pizza who currently operate stores in Hobsonville Point and Botany Downs, have signed an 8-year lease with two further rights of renewal of four years each, returning $43,670 per annum net plus GST.

Mark Anthony Hair Design, which boasts more than 29 years' experience, is also within this development, servicing an already strong and loyal clientele base following relocation from the Lincoln North Centre. Mark Anthony Hair Design has secured a new 6-year lease with two further rights of renewal of three years each, returning $39,480 per annum plus GST.

Yu Tea which offers a range of teas, Taiwanese food and deserts has secured the site on a new lease with two further rights of renewal of four years each, returning $60,325 per annum net plus GST.

"The units were originally built to keep by the vendors so no expense has been spared, ensuring the property has been built to a very high standard. This site has one of the most accessible routes to State Highway 16, only 600m from the Northwestern Motorway interchange," says Smith.

"Two of the key drawcards to this development is the dual entry and exit points and the very generous on-site car parking," Kermode adds.

"The development occupies one of the proudest road frontages to Lincoln Rd and boasts prominent signage opportunities and exposure to 45,000 passing cars a day," Smith points out.

Brokers say the property is virtually a "completely passive investment" as it is externally managed by Centurion Management Services.

"High-quality construction means the structure will last longer, involve lower maintenance and is generally hassle free," says Chand.

The units are close to the Lincoln North shopping centre, approximately 1km away, and the newly constructed NorthWest shopping mall, 5km away to the north at Westgate. "Four major Special Housing Areas on Fred Taylor Drive, only a 10-minute ride away, are planned to house nearly 4000 new dwellings in the next 10 years," Smith says. "If you think of that within the geographical context of Henderson, it is a major transformation."

Lincoln Rd is a major feeder route running from Swanson Rd in the south to the Northwestern Motorway. It is a primary link between Henderson Town Centre and surrounding suburbs, and home to a mix of retail centres inter-spersed with general commercial premises and dwellings.

"Lincoln Rd is one of the most sought-after destinations in Auckland among retailers looking to take advantage of the high passing traffic and proximity to the dense surrounding residential neighbourhoods," Kermode says.

With major upgrades to the Northwestern Motorway under way and the anticipated completion of the Western Ring Route in 2017, accessibility is set to improve."

"West Auckland is the city's fastest growing area for the next 30 years. It is expected to house around 30,000 new dwellings and the creation of about 13,300 new jobs, all of which make developments such as this in extremely high demand," says Smith.