Whangarei state highway landmark

The Otaika Shopping Centre is on Whangarei's southern urban boundary. Photo / Supplied

Land and buildings housing one of Whangarei's first neighbourhood shopping hubs, are on the market.

The Otaika Shopping Centre, at Raumanga, on Whangarei's southern urban boundary, comprises a 1270sq m building on 2799sq m of freehold land.

Built in the 1960s and expanded in the 1970s, it has eight retail and commercial tenancies, which generate a combined annual income of $260,534. Among its retail tenancies are:

• grocery store Four Square, on a two-year lease expiring in 2021;
the Aussie Butcher, on a six-year lease expiring in 2021;
• Liquorland, on a 10-year lease expiring in 2027;
• Otaika Pharmacy, on a 10-year lease expiring in 2027;
• Postshop, on a 10-year lease expiring in 2027;
• Otaika Dairy, on a 10-year lease expiring in 2027; and
• Otaika Takeaways, on a 10-year lease expiring in 2028.

Also, guaranteed rent of $18,690, from a 115sq m vacant commercial space above the dairy and takeaway outlets, has been underwritten by the vendor for a year.

The Raumanga property is for sale by auction at 1pm on October 24, through Bayleys Whangarei. It features in Bayleys' latest Total Property portfolio magazine.

Bayleys agents John Haselden and Neil Campbell refer to it as the city's first "one-stop-shop" retail hub.

"Heading south out of Whangarei, the centre presents a last chance to purchase household and domestic commodities, along with food and beverage products," Campbell says.

"With the Whangarei bypass route, there's more emphasis on urban shopping locations like this. NZ Transport figures show an average of 30,000 vehicles drive past each day."

Sixty car parks are spread either side of the complex, which can be entered from the 150m State Highway 1 frontage onto Otaika Rd, or from the rear, via the Otaika Rd trunk.

The Four Square and Aussie Butcher portion of the building is a high-stud structure typical of grocery store formats. A mezzanine within the Four Square tenancy is used for offices and storage.

"Vacant commercial space above the dairy and takeaway outlets was once used by a professional services business and a hairdressing salon (each occupying about 55sq m). Following refurbishment and refit, these spaces would be suitable for such uses once again," Campbell says. "Alternatively, they could be consolidated into one larger office unit."

Haselden says the centre has a perfect tenancy mix, offering most products local shoppers require.

"The pharmacy is just across the road from a neighbourhood medical centre, enabling patients to fill prescriptions without going into town," he says.

"Standing at Whangarei's southern gateway, these shops service the immediate Raumanga area and also the semi-rural locations of Otaika and Portland further south.

"For folk heading home to farms and lifestyle blocks they're often the last place to buy supplies. They're also first stop for a convenience shop, when headed into the city.

"These businesses attract many of the pupils and staff at Northland Polytechnic, immediately across the road.

"Five of the tenancies are on relatively new leases stretching out almost 10 years. That's rare for a retail block of this nature but it reflects the reverence with which the Otaika Shopping Centre is held by locals."