Low site coverage, big opportunity
Multi-tenanted buildings on a substantial site in the heart of the Mt Wellington growth area provides purchasers with a tremendous development opportunity, Bayleys salespeople say.
The 9281sq m freehold site at 519 Ellerslie-Panmure Highway is in the cityfringe community’s thriving retail precinct, currently experiencing significant residential, commercial and infrastructural development.
Bayleys Auckland City & Fringe team director Alan Haydock says investors and development firms are looking through near-term challenges to future opportunities, with expansion providing feasibility through enhanced fundamentals.
“Strategically located a short distance from key highway interchanges, in a prominent location adjacent to one of the city’s busiest McDonald’s stores, the property is in a prime spot to leverage future growth.
“Auckland Council has earmarked Mt Wellington and Panmure for more intensive residential development, which brings commercial opportunity and a pipeline of planned infrastructure works.
“A site opposite the property, formerly occupied by Moyes Panmure, has been acquired by Woolworths, and a neighbouring property on Mt Wellington Highway is set to undergo a development into a large residential build-to-rent with 297 units.
“Significant recent improvements to the immediate transport network have been completed. Panmure train station – just two minutes from this property – has experienced major upgrades, and the eastern bus corridor is next, providing high-frequency public transport linkages to Auckland’s CBD.”
Haydock is marketing the property for sale by tender closing at 4pm, Tuesday, October 24, unless sold prior, with colleague Damien Bullick.
The substantial landholding is zoned Business–Mixed Use, providing moderate to high-intensity residential and commercial development with a maximum build height of 18m.
The property generates a total net income of around $807,379.93 plus GST, with opportunities for immediate rental growth.
Bullick says two stand-alone retail buildings and a smaller rear workshop building occupy the site with a low building coverage ratio
At the site’s west, a two-level building and a basement are split into two main tenancies. “A business operates a largeformat Chinese restaurant on the ground floor with private dining rooms above while the basement is utilised as storage and refrigeration. The business has a sixyear lease expiring in September 2027. The automotive workshop behind the main building is included in this lease.
Bullick says a separate business operates a Vietnamese restaurant in the same building, with a six-year lease to September 2024. “The tenant has one, three-year renewal right, with rent reviews to CPI plus 1 per cent.”
A second stand-alone building, on the eastern portion of the site, features a two-level premises fully occupied by a business which operates a Chinese supermarket on the ground floor. It has a lease expiring in May 2024.
The remainder of the site is underdeveloped and used as parking for approximately 150 vehicles.