Warkworth gateway properties in portfolio
Recently opened retail centre is on a busy stretch of State Highway 1, reports Colin Taylor
Four retail outlets and a childcare centre are for sale in a new retail development on a high exposure site at the southern entrance to Warkworth north of Auckland. The five properties in The Grange complex located at 67 Auckland Road, the main road into and out of Warkworth, will go up for auction on September 21, unless sold earlier by negotiation as part of Bayleys’ latest Total Property commercial and industrial portfolio launched yesterday,
The five properties are being marketed by Matt Lee, James Chan and Quinn Ngo from Bayleys’ International Division in conjunction with Jan Hutcheson, Bayleys Warkworth who has transacted many of the childcare centre’s leases.
Lee says the recently opened retail centre, located on a busy stretch of State Highway 1, offers property investors the opportunity to secure new premises with long- term leases in place with built in rental growth.
Three of the properties are smaller food and beverage outlets with new seven to 10- year leases and annual net rental income of between $ 27,500 and $ 36,000 — which Lee says puts them in an affordable price bracket for smaller investors and family trusts looking for strongly located commercial investment property opportunities in a high growth area.
The largest retail unit in the complex totalling 389sq m is also being auctioned, offering a six- year lease, with one six- year right of renewal, to bulk retailer Floorwise. It will produce net annual income of $ 174,400 with fixed annual rental increases based on the Consumer Price Index ( CPI) plus 1 per cent as well as threeyearly market rent reviews.
“Floorwise is currently fitting out a new style centre in the building — the only one of its kind in the Rodney district — to showcase a variety of floor coverings and window products in a stylish, modern setting,” says Lee.
Floorwise began in 2009 operating from now well established premises in Henderson. The Warkworth store is part of a planned expansion throughout New Zealand. It will showcase product and design ideas for all types of flooring including carpets, vinyls, timber and laminate, ceramic tiles and even polished concrete floors. There will also be a bathroom and kitchen showroom and a comprehensive selection of window products.
The childcare centre i s for sale with a new 20- year lease to early childcare provider Educare Group. It encompasses 390sq m of indoor space and an outdoor play area of 442sq m. Established in Whangarei in 2005, Educare now has eight childcare facilities in Northland and is expanding into other parts of the North Island.
The Warkworth Educare centre is licensed for 80 children and at full capacity will employ 10 teachers and a nutritionist. Its lease is producing net annual income of $ 174,400 and has fixed annual 3 per cent rental increases, with a review to market after 10 years.
The smaller food and beverage outlets for sale are:
A 62sq m unit leased to Tank Juice for 10 years, producing net annual income of $ 35,823 with fixed annual 3 per cent rental increases. This New Zealand owned and family- run business provides healthy beverage and food options and was established in 2001. It now has over 50 stores throughout the country, all of which are fully owned by Tank Juice Ltd.
A 59sq m unit leased to Kebabs on Queen for seven years, producing net annual income of $ 32,450 with annual rental reviews to CPI plus 1 per cent and to market in the fourth year of the lease. The Turkish takeaway opened its first premises on Queen St, in Auckland’s CBD, in 1997 and there are now 12 Kebabs on Queen around the North Island
A 48sq m unit leased to Noodle Noodle for 10 years is producing net annual income of $ 27,500 with fixed annual rental increases to CPI plus 1 per cent and market reviews every five years. The Chinese takeaway is operated by Warkworth residents who have been in the fast food business for 10 years.
The Grange i s anchored by a McDonald’s restaurant and a BP Service Station at its entranceway. It comprises a mix of national and local businesses with a strong emphasis on food and beverage premises. Other nationally branded occupants include Domino’s Pizza, Coffee Club and Bottle- O. The immediate surrounding commercial area has a range of established businesses including Mitre 10 Mega, Carter’s, Repco and VTNZ. The Grange is the sole retail service centre travelling south along SH1 between Wellsford and Auckland. There is a right- hand turning lane into the centre for traffic travelling north into Warkworth.
“This a high- profile site with massive exposure to huge volumes of passing traffic,” says Chan. “It will source customers from motorists and the growing local population and surrounding catchment area of permanent and holiday residences.”
Warkworth’s population is projected to continue expanding significantly from just under 4000 at the 2013 Census to 20,000 over the next 30 years. “Warkworth has been identified as a key regional location by Auckland Council to accommodate Auckland’s continuing strong population growth,” Chan says.
“A large area of farm land surrounding Warkworth has a proposed future urban zoning under the new unitary plan, which is likely to see it opened up for residential and commercial and light industrial use, and there are several hundred houses under construction next to the Grange.