Bike Barn property a ‘bite sized’ investment
The property for sale at 1/40 Cavendish Drive, Manukau, occupied by Bike Barn.
A property on a busy retail strip in Manukau, occupied by Bike Barn, will go under the auctioneer’s hammer next month.
“This is ‘bite-sized’ investment that offers buyers a very desirable set of attributes,” says Adam White of Colliers International who, with colleague Peter Kermode, is marketing 1/40 Cavendish Drive, for auction at 11am on November 11 at 151 Queen St, Auckland, unless it is sold before the auction day.
“This is a prime street front property in a high-profile location surrounded by other well-known retailers,” White says. “There is also built in rental growth and a long-term lease to a national-brand tenant.”
Kermode says uncomplicated nature of the property and its accessible price range means it is expected to appeal to a wide range of buyers, including first-timers to the commercial investment market.
“Retail investments are always popular in the auction room and this property, with its single well known tenant and functional building, is expected to attract good bidding.”
The property is being sold with a new six year lease in place earning $100,000 in annual net rental income. The tenant also has the option to renew the lease on expiry, potentially extending the term to November 2027.
Bike Barn, which has occupied the property since 2013, is the trading name of Bikes International, a bicycle distribution company founded in 2004. It has grown to become a market leader New Zealand with over 40 exclusive distributors and more than 200 other stockists.
Kermode says the 420 sq m property makes an ideal low-maintenance holding. “The building has been recently renovated and is highly versatile. It would readily suit many other retailers, with its street front position and profile making it easily lettable.”
He says it is part of a multi-unit development which has plenty of off street customer car parking in a drive-in central car parking area.
White says the property has a wide street frontage in a prominent position 300 metres down the road from the Manukau Supa Centa - one of New Zealand’s largest dedicated large-format retail centres.
“This spot in central Manukau, in a well-established bulk retail precinct that is known to many people as a convenient retail destination, is hard to beat as an investment location,” he says. “Cavendish Drive is a busy thoroughfare and the area has long been a popular shopping destination allowing local retailers to capture a steady flow of customers.”
Major retailers with outlets on Cavendish Dr include Kmart, Mitre 10 Mega, Spotlight, Bunnings, Pak n Save and Harvey Norman.
Kermode says the area’s low vacancy rate is a further plus for investors. “There are very few vacant retail units along Cavendish Drive as a result of the limited land availability. Due to its strategic location near motorways and surrounded by a large residential catchment, we expect the property will be sought-after by many investors for their portfolios.
“Colliers International’s latest New Zealand retail property market report shows that demand for retail space in Auckland CBD, the suburbs and shopping centres is very high. Vacancy rates are down across the whole city with retail spending driven by rising house prices and real wage growth.
“The positive factors operating in the Auckland retail market, along with the straightforward and easy-to-understand nature of the asset class, mean this property should be in high demand,” Kermode says.
White says Cavendish Dr services a large and growing local population base and is part of South Auckland’s busiest retail and commercial precinct. “Manukau is the principal ‘town centre’ in South Auckland and Cavendish Drive is the main arterial running through it, linking the Southern and South Western motorways.”
“Excellent motorway access has helped Manukau become one of the most popular commercial areas in Auckland, with many leading companies now having a presence here,” he says.
“Retail, commercial and industrial operations have combined to create a well-rounded mix of occupiers and a full-service town centre that supports the surrounding large and growing population.”
Adam White (left) and Peter Kermode (right), of Colliers International.
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