Split-risk investment opportunity

A split-risk property tenanted by three leading car dealerships is being offered to investors.

The 11,083sqm freehold property, at 156 Central Park Road, in Henderson, West Auckland, has been newly developed and generates a net rental income of $975,295 a year plus GST.

DABS Consulting has the property available as a limited partnership investment.

Brian Caldwell, director of DABS Consulting, says: "DABS has been specialising in limited partnership investment for approximately five years and they are very popular.

"It allows the investor to spread their investment funds over a variety of locations, tenants and investments returns. Compared to the prevailing bank deposit rates, the partnership returns are favourable."

The projected return for 156 Central Park Road is 6.75 percent per annum pre-tax.

Caldwell says the property is located within a high-profile spot in an established commercial precinct in West Auckland.

It is on a corner site opposite furniture and homeware retailer Nido and is home to the West Auckland dealerships of Volkswagen, Hyundai and Isuzu. It also comprises a sealed vehicle storage yard leased to Winger Motors.

The weighted average lease term is 5.5 years, backed by strong guarantees on each of the leases.

The property at 156 Central Park Dr is split into three different sites on separate leases.

Site 1 consists of a 1359sq m building on 4129sq m at the corner of Central Park Dr and Soljan Dr. Built in

2017, the improvements include a

566sq m showroom, 117sq m mezzanine and 676sq m workshop. There are also 53 car parks on-site.

Auckland Vehicles Ltd, trading as Isuzu and Hyundai West Auckland, occupies the site on a 10-year lease with seven years remaining. The lease returns $321,918.79 in net annual rent. Rental reviews are every two years to CPI, with market rental reviews every five years.

Site 2 comprises a 1525sq m building on 3585sq m with frontage to Soljan Dr. The property was built for Tristram European Ltd, trading as Volkswagen, to meet VW's international specifications.

With 454sq m of showroom, 334sq m of mezzanine and office space and a

775sq m workshop, this site also provides 50 car parks.

The property is on a five-year lease returning $488,875.82 plus GST, with one right of renewal of a further five years.

Site 3 comprises a sealed yard, currently used for car storage, on

3,366sq m. It is tenanted by Winger Motors Ltd on a new five-year lease with a five-year right of renewal, returning $164,500.42 in net annual rent.