Top properties on busy Lincoln Rd
Texas Chicken and Co- Kids Childcare occupy prime sites in populous and busy West Auckland road
Two top investment opportunities have come up for investors on one of the busiest roads in Auckland, featuring a global fast- food giant, and an experienced childcare operator with a proven track record, say brokers.
The properties at 303- 307 Lincoln Rd will be sold individually by auction on October 12.
Colliers International brokers Shoneet Chand, Matt Prentice and Sean Finnegan are marketing fastfood chain Texas Chicken, positioned at the entrance of the development by Aubrey Edward Group.
“In 2015 Texas Chicken started their 15- year- lease term, plus two further rights of renewal of six- yearseach, in this standalone purposebuilt, high- quality facility, which offers strong rental upside in one of Auckland’s best fast- food sites,” says Chand.
Texas Chicken is part of a global brand that has more than 1600 outlets in more than 25 countries.
“It is extremely rare to offer brand new fast- food investments of this calibre to the open market like this in Auckland. Texas Chicken returns $ 165,000 plus GST per annum and their new 15- year lease offers fantastic stability,” Prentice says.
The store is one of Texas Chicken’s three New Zealand premises, with plans to grow to 20 restaurants in one of what Finnegan calls “one of the most exciting bottom- drawer investment opportunities of 2016.”
Chand is also marketing a brand new childcare centre, directly neighbouring Texas Chicken, which he is marketing with colleagues Peter Kermode and Craig Smith, by the same developer.
The purpose- built facility has a license for 98 children and is run by CoKids Childcare.
This investment opportunity provides a brand new 12- year- lease, with two further 12- year rights of renewal and a net rental return of $ 214,032 plus GST per annum.
The rental equates to $ 42 per child per week, which Chand says i s arguably below market rates. The property’s rental growth is offered through yearly reviews against the Consumer Price Index with market reviews every six years.
“Childcare is seen as an essential service by central government right across the political spectrum. But there are high barriers of entry in the sector to build new centres due to limited land supply, high land values, and increasing stringency around consenting,” says Kermode.
“Considerable good- will i s attached to the business and location meaning that once they are up and running, childcare centres prove to be fantastic long term tenants. This building is brand new with quality fixtures and fittings while being built to 100 per cent of the New Building Standard, all of which are highly desirable characteristics when banks are considering lending,” Smith adds.
The property’s high construction quality will ensure a longer- lasting, lower- maintenance product and the long term lease with good rental growth potential make it a highly desirable package for investors looking to expand their portfolio.
“The property will be looked after by Centurion Body Corporate, so external maintenance is taken care of,” Smith points out.
The total development offers generous on- site car parking and complimentary retail amenity within the development for parents.
“The low starting rental gives the tenant greater means to grow the business quickly, and provides income growth potential for the new owner a little further down the track,” Chand says.
The site’s prominent signage exposes the two businesses to 45,000 cars a day. It comes with dual entry and exit points and i s 600m from State Highway 16.
“It is 500m to Lincoln North Shopping Centre, only a kilometre from the newly built NorthWest Shopping Centre, and 5km to the north from Westgate,” says Smith.
Four major Special Housing Areas are situated a 10- minute drive away on Fred Taylor Drive, destined to house approximately 4000 homes in the next 10 years, which Chand says ramps up the area’s strategic desirability.
“Lincoln Rd i s one of the most popular and sought after destinations in Auckland among retailers looking to take advantage of the high passing traffic and proximity to the dense surrounding residential catchment,” says Finnegan.
Lincoln Rd i s a four- lane major feeder route which runs from Swanson Rd in the south to the northwestern motorway. It is a primary link between Henderson town centre and surrounding suburbs, and is home to a mix of local and national, bulk and convenience retail centres, general commercial premises and housing.
“With major upgrades to the north western motorway underway and the anticipated completion of the Western Ring Route in 2017, accessibility to and from the site from surrounding suburbs are set to drastically improve,” says Smith. A 4144sq mcommercial property, tenanted by Patton Ltd and Ferris Flooring Ltd at 81 Birch Ave, Tauranga, has been sold for $ 1,565,000 ( a 6.4 per cent yield; by Rob Pinny of Ray White Commercial, Tauranga. A Caltex service station on a 2957sq msite at 4 Station Rd, Kawakawa, on the corner with SH1 has sold for $ 3.1 million at a 6.7 per cent yield through Alan Haydock, Damien Bullick, Ken Hu, Bayleys Auckland and Tonya Spicer, Bayleys Northland. Ray White Newmarket commercial and residential agent Michael Greer has sold a mixed use 217sq m warehouse at 9 Prosford St, Ponsonby, for $ 2.35 million. The firsttime- on- the- market 304sq m freehold site, with parking for five cars, had been in the same family since construction in 1969. Stebbing Properties, which purchased the property, will lease the site. A 1443 sq mwarehouse/ office facility on a 2238sq mfreehold property at 49 Treffers Rd, Wigram, has been sold for $ 2.35 million by Sam State and Oliver Salt of Colliers International. The sale price represented a yield of 6.64 per cent. A 1042sq mtwo- level retail and office building on a 744sq melevated site with harbour views at 65- 67 Birkenhead Ave, Birkenhead, has sold for $ 3.2 million at a 6.25 per cent yield through Adam Watton, Adam Curtis, Damian Stephen, Bayleys North Shore Commercial and Tony Chaudhary, Bayleys South Auckland. It has 10 tenants and future development potential up to five storeys.