Two spots up for grabs on desirable Takanini straight

The Pirtek Counties building is in a prominent spot on Great South Rd. Photo / Supplied

Two properties fronting on to the popular Takanini straight's commercial and industrial precinct are up for sale as fully leased investments to well-established local businesses and will be auctioned on September 23 as part of Bayleys' Total Property auction.

Mike Ashton, of Bayleys Counties who is marketing the properties with Peter Migounoff, says both are in the popular price range for investors.

The larger of the two at 188 Great South Rd is split into two tenancies, producing net annual rental income of $66,000.

One tenant is weight-loss workout franchise Vibra Train which has an initial 12-month lease, with two rights of renewal and a final expiry date of 2015.

The other tenant is fashion retailer Ann Marie Fashion Boutique. The small company specialises in fashion for larger women who enjoy stylish clothes "but who don't have the figures of supermodels". The company says it has built up a loyal clientele extending well outside its catchment area.

Ashton says the property is considerably under-rented given the latest valuation which leaves potential for significant rental growth in the long term.

It comprises a standalone 538sq m building which has recently had a roofing upgrade and with the building only covering 40 per cent of the 1362sq m site, there is also an opportunity to develop the property further at some stage.

"It is a very modern looking building and the fit-outs of both premises are also very up-to-date," Ashton said. "It has the added advantage of providing 18 on-site customer and staff parking spaces which are ample for both businesses."

Almost directly opposite is an industrial unit on the corner of Great South Rd and Graham Rd which is leased to hydraulic equipment firm Pirtek Counties at a current net annual rental of $24,000. Pirtek Counties has a new five-year lease with the right to renew it until 2019. It is part of a national franchise group with 17 outlets around New Zealand.

Ashton says both properties have the magic ingredient in the area - good exposure to Great South Rd. They are about 1km south of the motorway interchange and at the beginning of the Takanini straight.

"Apart from a few vacant car yards with buildings really only suitable for the used vehicle dealership industry, there is very little vacant space along this stretch of road because most properties fronting it have such high visibility to passing traffic and premises along here are very much in demand," he said.

The 120sq m Pirtek Counties showroom is part of a complex that has an 80m frontage on to Great South Rd and a 70m frontage on to Graham Rd. There is also access from Waimana Rd.

Ashton says that with bank deposit rates and interest rates at a low, the commercial and industrial property investment market is in good shape with investors looking for properties in the sub-million dollar price bracket.

"Takanini is always a popular area for investment because of the fact that it provides businesses with high visibility and a wealthy catchment area from the lifestyle blocks further out."