Tough times favour strange bedfellows
A Glen Eden property leased to the Salvation Army store and Cash Converters have been put on the market for sale.
The 1511sq m freehold corner site at 1 Glendale Rd, returns $251,224 net from the tenants, who are both on long leases.
Bayleys sales agent Mike Adams says the strong lease covenants and high-profile nature of the location should drive interest from investors.
Adams, and colleagues JeanPaul Smit and Alan Haydock, are marketing the property for sale by auction on April 1, unless sold earlier.
The property, which has a Capital Value of $3,325,000, offers
680sq m of space in a modern building, plus 33 on-site car parking spaces. Its Auckland Unitary Plan, Business-Town Centre zone provides for development options, including builds of up to
27-metres high.
● Cash Converters occupies
370sq m of space, on a six-year lease term ending in October 2022, with two six-year right of renewals. The tenancy, which includes 17 parking spaces, generates $131,986 net in annual net rental income.
● The Salvation Army occupies
309sq m, on an initial two-and-ahalf-year lease ending in May 2019, with two right of renewals of twoand-a-half years each. The tenancy, which includes 16 parking spaces, generates $119,237 pa.
Adams says the tenancies are predominantly open-plan and have significant natural light from multiple window frontages. The corner tenancy, taken by the Salvation Army, includes a partitioned rear office/storage space and offers internal access to the car park.”
“Both tenants represent wellestablished nationwide brands and have a steady business model that is largely immune to any downturns in the economy,” says Adams.
“In addition, the property is positioned a busy corner site that sees 20,000-plus vehicles pass daily and is surrounded by a vibrant mix of businesses. Glen Eden is a fast-growing commercial and retail precinct, offering a wide range of amenities, while the corner of Glendale and West Coast roads is close to multiple public transport options, including its train station,” says Adams.
“This will be of interest to investors wishing to landbank significant holdings around transport hubs identified as ripe for intensification and development.
“The zone provides for a wide range of activities, including commercial, leisure, residential, tourist, cultural, community and civic services, and provides a focus for commercial activities and growth.”
The Salvation Army operates more than 100 Family Stores across New Zealand. The stores sell donated second-hand goods and are among the most well-known and visible parts of the charity’s work. Store profits go towards supporting the charity’s community relief work. The charity views the stores as a way to help families on tight budgets gain access to quality, second-hand items at affordable prices. They also help with emergency relief for people in urgent need, including anything from furniture and household supplies to clothes.
Cash Converters, which has had a presence in New Zealand since
1993, primarily offers pawnbroking, payday loans and instalment loans.
The company’s network of stores also trades in second-hand goods — typically jewellery, home entertainment equipment, sports gear and musical instruments.
“Analysts generally view pawnbroking as “recession-proof” as many of the sector’s customers are judged to be already living in tight financial circumstances.
“Charity shops are viewed in a similar light,” says Adams.
“Charitable giving in New Zealand, particularly the donation of second-hand goods to charity shops, is high.
“Figures from 2016 show that Kiwi charitable donations made up
0.79 per cent of the country’s gross domestic product, and that Kiwi volunteers contribute around
270m hours to the community.” Big Grafton sale
A 6800sq m commercial office block at 7 City Rd, Grafton has sold by negotiation for $23m. The deal was brokered by Jonathan Lynch and Tony Allsop of Colliers International.
Hornby Countdown
A 1.77ha site at 17 Chappie Pl, Hornby, occupied by a Countdown supermarket, was sold for $21.5m on behalf of NZX listed Investore Property Ltd at a 6.26 per cent yield by Sunil Bhana and Mike Houlker, Bayleys Auckland and Blair Young, Bayleys Christchurch. On SH1, it is leased for 20 years from December 2012.
Queenstown retail
A mixed-use commercial property with ground floor retail units at 1 Onslow Rd, Lake Hayes Estate, was sold by negotiation for $2.41m. The deal was brokered by Tim Thomas of Colliers.
Office building, land
A two-level 4894sq m office building on an underdeveloped 7219sq m site with 92 car parks at 12 Lambie Dr, Manukau, sold for $7.5m at an 8.23 per cent yield, through Alan Haydock and Damien Bullick, Bayleys Auckland. Tenants include warehouse and office occupants.
Tauriko lot record
A 3740sq m vacant lot 223 of 32 Paraone Koikoi Dr, near Tauranga, sold for $1,776,500. A record sale on a rate per square metre basis for industrial land at Tauriko at $475/sq m. The deal was brokered by Rachel Emmerson and Simon Clark of Colliers, Tauranga.
A 480sq m commercial building on a 736sq m corner site overlooking the waterfront at 2 Wallis St, Raglan, has sold for $2.35m at a 5.8 per cent yield through Mike Swanson and Alex ten Hove, Bayleys Waikato.
A Manufacturing Pet Care Products business, WashBar Ltd at 7-11 Nell Pl, at Ramanga, Whangarei, has sold off-market for $640,000. The deal was brokered by Shelley May, Pauras Rege and Marcus Jacobson of Colliers.
A Manufacturing Pet Care Products business, WashBar Ltd at 7-11 Nell Pl, at Ramanga, Whangarei, has sold off-market for $640,000. The deal was brokered by Shelley May, Pauras Rege and Marcus Jacobson of Colliers.
An 809sq m mixed use zoned freehold site at 51 Florence Ave, Orewa, with 209 sq m of office/ warehousing and 600 sq m of yard space sold vacant for $1.5mthrough Mustan Bagasra, Bayleys Orewa.
A 357sq m site at IB Edgerly Ave, Epsom, on the corner with Broadway, zoned Mixed Use, sold at auction for $1.26m at a 3.18 per cent yield by James Chan, Quinn Ngo and Matt Lee, Bayleys Auckland, in conjunction Terry Kim, Bayleys North Shore Commercial.