East Auckland retail investments
Ablock of four retail investments in a block anchored by key national tenants is for sale in Auckland’s eastern suburbs. Colliers International brokers Gawan Bakshi and Matthew Barnes are marketing units 2-5 at 490 Pakuranga Rd, Half Moon Bay, for sale by deadline private treaty.
Offers close on March 22, unless sold earlier.
Bakshi says the properties are being sold individually, giving investors the opportunity to buy one or all four.
“Located in East Auckland’s entertainment precinct, these tidy modern units are part of a highly active retail block anchored by burger retailer Carl’s Jr, says Bakshi.
“They occupy a commanding position on busy Pakuranga Rd, giving them exposure to traffic on one of the main arterials through this affluent and growing area. Tenants include cafe franchise Columbus Coffee and popular sushi roll retailer Bruce Lee Sushi. Each of the units is within an affordable investment price bracket, returning net annual rents of between $27,000 to $60,000. With built-in rental growth and good tenant covenant, investors will not want to miss this opportunity to acquire one or more of these solid retail assets in a steadily growing Auckland location.”
Bakshi says the area benefits from a young to middle-aged demographic with a diverse ethnic mix, high employment rate, and strong median household income of some $75,000.
“The surrounding area is well known for its mix of hospitality, shopping and entertainment offerings, including national retail and trade outlets,” he says.
“The popular Pakuranga Rd retail strip boasts a variety of international eateries and convenience food and beverage outlets.
“Retail offerings in the area range from services such as petrol stations, pharmacies, doctors and banks, through to large format retailers.”
Barnes says the property is extremely well connected, being little more than 10 minutes’ drive from the Southern Motorway, while public transport services including ferries, buses and trains are nearby.
Barnes says the units are part of a modern 350sq m retail block on the western boundary of the property, across the car park from Carl’s Jr.
Each unit has ample customer car parking, with spaces in front of all four units.
● The largest tenancy, Unit 2, comprises 130sq m with frontage to Pakuranga Rd. Columbus Coffee is signed to an eight-year lease on the unit returning $60,373 in annual rent. The current lease has three years remaining, after which Columbus has two rights of renewal of a further eight years each.
● Ji Wang Restaurant — which sublets the adjoining 80sq m tenancy in Unit 3 — is signed to a six-year lease returning $41,247.76 in annual rent. The current lease expires in 15 months, after which there are two rights of renewal of four years each.
● Bruce Lee Sushi — which occupies the 70sq m tenancy at Unit 4 — is signed to a 10-year lease returning $27,002 in annual rent. The lease has five years remaining, followed by two rights of renewal of fives year each.
● The final 70sq m tenancy, Unit
5, is sublet to a Chinese health shop, being signed to an eight-year lease returning $37,973.90 in annual rent. The lease has three years remaining, followed by two rights of renewal of four years each.
All four leases offer guaranteed rental growth. Unit 2’s lease also offers market rental reviews on renewal, while the leases on Units 3 and
4 offer periodic rental reviews.