Fast food stores on menu for property investors
The land and building sustaining two fast food outlets in the middle of a busy Auckland suburban shopping precinct have been placed on the market.
The property at 188 Kitchener Rd sits directly opposite the Milford Shopping Centre with 65 shops and 757 carparks, which is next to a big New World supermarket.
Kitchener Rd is Milford’s main retail trading street and the address is zoned business town centre under the Auckland Council Plan.
With some 7m of high-profile street frontage, the property is leased by two tenants generating total passing rental income of $37,816 plus GST a year. A substantial sealed area at the rear of the property is used for vehicle parking, accessed with a service lane. On the other side of the service lane are residential dwellings.
The tenants include: Middle Eastern fast food outlet Kebab Serai occupying 51.1sq m on a current lease running through to 2022 with one further two-year right of renewal, generating annual rental income of $18,942 plus GST.
Sushi eatery Tomo No Ura occupying 50.78sq m on a current lease running through to the middle of this year with a further two-year right of renewal, paying annual rent of $18,874 plus GST.
The freehold property comprising
315sq m of land and a single-storey
101.89sq m building is being marketed for sale at auction on April 28 through Bayleys North Shore.
Salespeople Daniel Henderson, Ranjan Unka and Michael Nees said in the medium term there was a clear opportunity to improve the property’s yield by increasing existing rents as they came up for review.
“This is very much a ‘bite-sized’ investment opportunity for a purchaser looking to diversify their exposure in the property sector. That opportunity is very pertinent with the Government’s changes in residential property,” Henderson said.
“The 188 Kitchener Rd opportunity really does tick all the boxes – a sound building in a prominent location, in a prosperous suburb, with two established tenants in place who have a proven trading record in their activities.
“The site’s foot traffic also benefits from a pedestrian crossing virtually outside its front door.”
The zoning for 188 Kitchener Rd allows construction of mixed-use buildings up to 21m. Milford Shopping Centre owner New Zealand Retail Property Group last year announced an expansion above the existing mall of 63 luxury one, two, and threebedroom apartments.