The Grange complex, on State Highway 1, at the southern entrance to Warkworth.
The Grange complex, on State Highway 1, at the southern entrance to Warkworth.
Finishing touches are being put on the new commercial complex at 67 Auckland Rd (SH1) at the southern entrance to the fast-growing township.
The majority of the businesses that have committed to long term leases within the centre - which has a substantial food and beverage component - are now up and running. The development met with a strong response from the market with the majority of its 31 tenancies leased or bought by owner-occupiers ahead of final completion.
There has also been a 100 per cent clearance on a range of tenanted units offered for sale to investors on an individual titled basis in a number of stages. Yields have ranged from 5.2 per cent to 6.5 per cent at prices between $475,000 and $3,350,000.
James Chan, sales director for Bayleys' International Division, says investors have been attracted by The Grange's strong location, with its SH1 positioning providing high-profile exposure to about 6.35 million cars a year passing its entranceway.
"Other drawcards for investors are the new nature of the premises and their long leases, most of which also have built in annual rental growth," he says.
A third tranche of units has now been released for sale. These include four food outlets and a large variety store situated next to a BP service station at the entrance to The Grange.
Leases range from five to 10 years and annual net rentals from $30,000 to $92,500, putting them within smaller investors' budgets says Chan. All but one of the leases have fixed annual rental increases based on the Consumer Price Index (CPI) plus 1 per cent.
Chan is marketing the five units with Matt Lee and Quinn Ngo of Bayleys International Division in conjunction with Jan Hutcheson, Bayleys Warkworth. They will be offered for sale individually as part of Bayleys' final Total Property auction for the year on November 30, unless sold earlier by negotiation.
The largest offering for auction is the 374sq m Cross Gate variety store in a prime position next to the BP Service Station, near the centre's entrance. It is part of the Real Mean Store chain which operates in South Auckland.
The store specialises in a wide range of products, sold at a low cost. Product lines range from cleaning products, toys and party products to pet accessories and giftware. Lee says because of The Grange's position on a major tourist highway, there are plans to add items with appeal to tourists.
The Grange Bakery and Green Bay Fruit and Veggies.
The store has a six year lease, with two four-year rights of renewal, and is generating net annual rental income of $86,700 with fixed annual rental increases based on the CPI plus 1 per cent.
Green Bay Fruit and Vegetables has established its fourth store at The Grange, with others in Silverdale, Kelston and Albany opened in the past two years.
"The owner of the business has established many greengrocery stores since arriving in New Zealand more than 20 years ago, a large proportion of which are now owned and operated by other family members," says Lee.
Green Bay Fruit and Vegetables stores specialise in fresh fruit and vegetables, frozen Asian products and general grocery items. The company has taken a new eight year lease with two four-year rights of renewal over the 297sq m unit that is for sale at The Grange. That lease is producing initial annual net rental income of $92,500 with annual increases based on the CPI.
Also for auction is a 128sq m unit occupied by Cizzlin, a fusion grill restaurant specialising in Mongolian style dine-in or takeaway food. It has sprung from the well-known Gengy's stable of restaurants, the first of which was established by Cizzlin's owner over 14 years ago and has expanded to nine restaurants, says Jan Hucheson.
"Cizzlin is responding to the demands of travelling customers who enjoy the Mongolian style taste experience but require a quick turnaround. Diners can design their own meal by choosing from a meat selection, noodles or rice plus a selection of vegetables."
Cizzlin's lease runs for eight years with two four-year rights of renewal and is generating net annual rental income of $65,000.
The two other units are smaller offerings each producing net annual rental of around $30,000. One is a 77sq m bakery, established by a husband and wife team who have been operating their Snells Beach bakery since 2011, with a five year lease with one eight-year right of renewal.
The other is a 59sq m fish and chip shop owned and operated on a 10-year lease by a Warkworth couple, one of whom was previously head chef at the Puhoi cheese cafe.
The Grange has a mix of national and local businesses and is anchored by McDonald's and the BP Station. Hutcheson says it is sourcing customers from passing motorists and the growing population of Warkworth as well as the surrounding coastal catchment area of permanent and holiday residences.
Construction is due to start shortly on a boutique residential subdivision called The Grange Estate next to the retail complex which will include a range of townhouses and standalone homes.
"The development of this subdivision plus another estimated 160 houses adjacent to this site, on which earthworks are under way, will further expand The Grange retail centre's customer base," says Hutcheson.
