Development opportunity in New Lynn
An urban development site in a high-growth location along Auckland’s western corridor, with diversified cashflow, features enormous potential for investors eager to collect income while making their plans.
The 2315sq m freehold parcel at 3068-3088 Great North Rd is held in two titles and is less than 300m from the New Lynn Transport Interchange and railway station.
Bayleys national director Asian Markets James Chan says the property is offered at a time of recalibration, where attractive features such as split-risk cashflow, strong zoning fundamentals and value uplift potential become more crucial for investors.
“Income has become the hedge against inflation as New Zealand’s property market cycle progresses, and the ability to collect a diversified income from 11 tenants gives this property an edge as investors review their balance sheets to seek and take advantage of the new opportunities offered by an emphasis on intensification.
“In addition to this, large-format premises in high-traffic urban locations are seeing consistent demand for both sale and lease as international brands expand into New Zealand and hybrid working fundamentals increase interest in neighbourhood shopping centres,” he says.
Chan is marketing the property with Bayleys Auckland Central Asian Market colleagues Owen Ding and Karen Yung.
The property will be offered for sale by international tender closing at 4pm on Thursday March 23, unless sold prior.
Comprising 11 tenancies largely occupied by longstanding tenants, the premises generates an annual net rental income of approximately $450,000 plus GST.
National brand fast-food retailers, including Burger Fuel, Domino’s and Sal’s Pizza, occupy the premises, in addition to a barber’s shop, pharmacy and optometrist, which each have leases of varying terms.
Ding says the property’s Business-Metropolitan Centre zoning, which permits intensive mixed-use activity and a build height of up to 72.5m, is a key feature for investors considering further development of the premises.
“Located along Auckland’s western corridor just 10 km southwest of downtown Auckland, the site is superbly situated to benefit from a growing residential catchment and adjacency to the established commercial precinct. Nearby LynnMall Shopping Centre features more than 100 retail stores, while the nearby Brickworks dining lane has multiple restaurants, an eight-screen cinema complex, and an 18-hole mini golf course.
“Given substantial recent investment into public transport, roading and amenities which has contributed to the growth of the apartment market locally, developers may consider mixed-use development with commercial occupants on the lower levels and residential units above or explore the option to buy and hold in a high-growth location,” he says.