Spotlight is a tenant Unit N at 111 Lincoln Rd. Photo / Supplied
Spotlight is a tenant Unit N at 111 Lincoln Rd. Photo / Supplied
Two large format retail properties on West Auckland's Lincoln Rd are for sale with three long leases to well-known brands Spotlight, Harvey Norman and Nood.
The neighbouring Henderson properties are within the busy Lincoln Centre retail development, which counts The Warehouse and Warehouse Stationery among a strong mix of national brands.
"The three leases with a weighted average term of 8.18 years earn $740,620.90 in net annual rent," says Caroline Cornish of Colliers International who, with colleagues Peter Herdson and Jason Seymour, has been exclusively appointed to sell the properties at 111M and 111N Lincoln Rd, Henderson, by deadline private treaty with offers on the properties closing at 4pm on Wednesday June 26 unless they sell earlier.
Cornish says the rental income increases to $784,286.69 in February 2020 when a renewed 12-year lease to Spotlight commences. She says all three leases benefit from fixed annual rent reviews of 2 to 3 per cent.
The two properties have a combined building area of 4313sq m across two strata titles and can be purchased together or as individual unit titles. Unit N is fully leased to Spotlight and Harvey Norman in two separate tenancies; while Unit M is 100 per cent leased to Nood.
Spotlight is an international retailer specialising in homewares, fabric and craft goods. It is signed to a 12-year lease, including a parent company guarantee, paying $436,647 in net annual rent which increases to $480,312.69 in 2020. The final lease expiry is in 2038.
Founded in Melbourne in 1973, Spotlight now has stores across Australia, New Zealand and Asia employing more than 6700 people.
Tenant Harvey Norman is an Australasian retailer specialising in furniture, whiteware and electronics. It is signed to a four-year lease with a final expiry in 2024 and pays $197,676 in gross annual rent. The Australian stock exchange-listed company has more than 200 outlets and franchises across Australia and New Zealand.
Designer furniture retailer Nood is signed to a six-year lease with a final expiry in 2035, paying $159,500 in gross annual rent. Nood was founded in 2007 and now has 16 stores across New Zealand.
Harvey Norman also leases in Unit N while Unit M is leased to Nood. Photo / Supplied
Cornish says the sale represents an outstanding opportunity to secure significant bulk retail properties in a popular and well-established location. There is also the potential to sub-divide Unit N into two titles, enabling each tenancy to sit on its own strata title.
"Lincoln Rd is arguably the most sought-after retail strip in West Auckland, and these building for sale are among the shining stars. They are high-profile cornerstone retail investment properties with exceptional fundamentals, including having three of New Zealand's most recognisable brands as tenants."
A recent initial evaluation procedure (IEP) assessment rates the buildings at 100 per cent of new building standard (NBS). Of solid construction, with concrete foundations and floors, and tilt slab concrete walls, the buildings feature aluminium joinery, long run cladding and roofing.
An expansive shared customer car park serves both properties, along with the wider Lincoln Centre.
Herdson says the centre benefits from its own controlled intersection on Lincoln Rd with a second entrance via a right of way off Moselle Ave.
"The Lincoln Centre is only 2km from the State Highway 16 motorway interchange, making it easily accessible to Auckland's CBD, which is only a 15-minute drive away at non-peak times," he says.
"Accessibility to and from Auckland Airport has also been dramatically enhanced with the recent completion of the Waterview Tunnel putting the airport within 30 minutes' drive."
Seymour says Lincoln Rd is one of the most popular retail destinations in Auckland, with a high level of 42,000 vehicles passing each day.
"The arterial is primary link between Henderson town centre and neighbouring suburbs, feeding a dense surrounding residential catchment; and linking Swanson Rd to the south with State Highway 16 to the north.
"The road is home to a mix of local and national retailers, commercial premises and residential dwellings."
Henderson is viewed as a growth suburb by Panuku Development Auckland which plans to develop a number of council-owned sites in the area. It is identified in the Auckland Unitary Plan as one of 10 metropolitan centres that are key business and employment hubs and is set to undergo extensive urban development.
