Ponsonby trophy ‘top dog’ for investors
A high-profile commercial premises occupied by a multi-national pet supplies retailer in Ponsonby is generating strong purchaser interest, thanks to an attractive combination of tenant covenant, lease term and development upside, according to Bayleys’ brokers.
The 986sq m freehold corner site at 9 Rose Rd is in a prime position just metres from Ponsonby Rd, which features a high proportion of upscale retail, restaurants and mixed-use developments.
Bayleys Auckland City & Fringe team director Alan Haydock says the property is particularly attractive to investors in the current market given its credentials as a performing income generator with preferable development fundamentals.
“Well-located properties in high growth areas, with strong lease covenants and the ability to generate ongoing cashflow continue to perform well, as investors seek low-risk assets which offer a hedge against inflation.
“Developers are also circling for opportunities, with the strategic location and intensive zoning an attractive prospect for those with an eye to the future,” he adds.
Haydock is marketing the property with colleague Damien Bullick.
It is for sale by deadline private treaty closing at 4pm on Tuesday, March 7 unless sold prior.
Comprising a double-stud height commercial premises measuring approximately 742sq m including a partial mezzanine, the property is occupied as a retail store and offices with on-grade parking for 13 vehicles.
Petstock occupies the premises on a recently renewed six-year lease term to June 2028.
The lease provides for two-yearly rent reviews and benefits from a redevelopment clause in the landlord’s favour.
Currently, the property returns an annual net rent of $339,500 plus GST.
Bullick says that while the property in its current form is undeniably a trophy asset, it has the dual benefit of preferable Business–Town Centre zoning, which allows for intensive future development to 18m.
“Situated in the heart of Ponsonby – one of Auckland’s premier shopping and dining precincts – the property benefits from convenient access to transport links and amenities, including the nearby Countdown supermarket, Ponsonby Central and the newly completed Silky Otter Cinemas,” Bullick says.
“This location is also just a short walk from Auckland’s CBD, lending itself to mixed-use development that would maximise site efficiency.”
“The location is second-to-none and positioned to benefit from an increasing focus on local commercial activities, as the rise of suburban centres post-pandemic continues to underpin robust demand from commercial, retail and residential occupiers.”
On the other side of the ledger, he says largeformat retail has emerged as a popular investment category, as a lack of available options in premium locations like Ponsonby creates competition among owner-occupiers and tenants.