New Lynn block up for auction
Agents offering a New Lynn retail block for sale describe it as a fully leased split-risk investment, with long-term redevelopment potential. Colliers International is marketing 3114-3120 Great North Rd, which is scheduled to go to auction, at 11am on November 13, unless it sells earlier.
Gareth Fraser, Auckland director of investment sales, says it comprises a single-level strip retail building of about 307sq m, on a 486sq m freehold site with rear car parks.
“This well-known block of shops is on a key arterial route in one of Auckland’s fastest-growing metropolitan centres,” says Fraser.
“The property has a desirable 18m of road frontage, and is leased to four tenants, returning $85,240 plus GST in gross annual rental income.
“The site offers obvious development credentials; its Metropolitan Centre zoning allows for some of the highest density of development in Auckland.”
New Lynn is only 10km southwest of Auckland’s CBD and benefits from abundant transport links. The suburb is served by a major bus interchange and train station, while easy access to the motorway network is available via Maioro St.
The property is tenanted by three local convenience eateries and a vape shop.
Chinese restaurant Noodle Heaven, which specialises in Sichuanstyle cuisine, occupies a 45.95sq m tenancy at 3114 Great North Rd. A four-year lease, held by Tesnack Limited, returns $14,933.74 in annual rent. The lease expires at the end of June 2021, with no rights of renewal.
Indian restaurant Juleez Kitchen occupies a 148.5sq m tenancy at 3116 Great North Rd. The restaurant is on an eight-year lease, held by Nelson Navikesh Ram, returning $33,888 in annual rent. The lease expires in mid-June 2023, with no rights of renewal.
Leading New Zealand vape retailer Vapo occupies a 46.5sq m tenancy at 3118 Great North Rd. A threeyear-lease, held by VEC Limited, returns $16,000 in annual rent. There are two rights of renewal of three years each, with the next rental review in June 2020.
Paasha Turkish Kitchen, which serves Turkish kebabs and grilled cuisine, occupies a 66.55sq m tenancy at 3120 Great North Rd. It is signed to an eight-year lease, held by Paasha Cafe Limited, returning $20,419.01 in net annual rent. A four-year right of renewal extends the final expiry date to mid-June 2025.
Colliers West Auckland’s James Appleby says New Lynn is experiencing a high level of growth, with significant commercial development in the area.
“Listed property company Kiwi Property recently refurbished the popular Lynn Mall with an expansive cinema complex and the new Brickworks dining precinct. Other retail destinations include Bunnings Warehouse, The Warehouse and Mitre 10 Mega.”
Appleby says strip retail remains a vital part of New Lynn’s trading mix, with high tenant demand for space.
“Retail units in the recent Merchant Quarter development, a short walk from the property for sale via the popular Totara Ave shared space, were fully leased and sold soon after completion.”
Colliers’ Josh Coburn says residential development is heating up.
“Major developer Avanda is planning a housing development on the former Crown Lynn potteries site. West Edge will comprise a mix of terraced housing, apartments, retail space and community facilities across the 11.3ha site.” Auckland Council recognises New Lynn among Auckland’s 10 metropolitan centres, Coburn points out.
“Its plans envision a unique, sustainable metropolitan centre with a world-class transport interchange. As a result, New Lynn’s population is projected to grow by 10,000 by 2030, adding 2000 new jobs to the area.”