Long-term leases, national tenants in prime spot

5:00 AM Saturday February 25, 2017 True Commercial

The property, located at 451 Te Rakau Dr, has six tenancies. Photo / Supplied

A large retail property occupied by six tenants in a high-profile corner position at The Hub retail complex in Botany is for sale.

Featured in Bayleys’ Total Property portfolio, the offering is being marketed by Bayleys South Auckland agents Roy Rudolph, John Bolton and Katie Wu. Tenders close on March 9, unless sold earlier by negotiation.

Located at 451 Ti Rakau Dr, the property includes four tenancies offering fixed annual rental reviews, says Rudolph.

The 3772sq m property produces net annual rental income of $807,926 per annum.

It is occupied by NZ Post/Kiwibank, Munns menswear, Bedpost, Carpet Court, Anytime Fitness and Pita Pit on various lease terms.

Rudolph says expiries on current leases are well spread out until 2025, with final expiries (if all renewals are exercised), stretching as far as 2034.

Four of the leases have fixed annual rental reviews based on the Consumer Price Index, plus 1-1.5 per cent. The fitness centre lease has fixed yearly increases of 2.5 per cent.

The NZ Post lease has two-yearly rent reviews to market with the next one due in September this year.

“The Hub is well established retail complex which was developed in the early 2000s and benefits from huge exposure to main arterial Ti Rakau Drive,” says Rudolph.

“The property we have for sale is in one unit title but all of the six tenancies have separate access and amenities and range in size from 106sq m to 1872sq m.

There are 23 tenants in The Hub complex with a variety of other fast food outlets such as KFC, Wendy’s, and Burger Fuel, Noddle Canteen and Dunkin Donuts as well as larger format retailers which include Resene and Magness Benrow.

The Hub is adjacent to a Countdown Supermarket on the corner of Ti Rakau Dr and Te Irirangi Dr.

“It was developed in conjunction with the nearby Botany Regional Shopping Centre to form a large Botany Downs retail precinct to service a rapidly expanding population,” says John Bolton.

“The surrounding suburbs are in one of the fastest developing areas within the Auckland region and predominantly comprise progressively growing new residential subdivisions including some high density housing”.