Medical tenants in Westgate units

5:02 PM Friday August 3, 2018 True Commercial

Westgate Pharmacy and Mercy Radiology lease 13F and 13G Maki St – identified by a blue border. Photo / Supplied

Two retail units in Westgate Shopping Centre are for sale promising a split-risk investment for the buyer.

Colliers International is marketing 13F and 13G Maki St by deadline private treaty. Offers close at 4pm on August 22, unless sold earlier.

Sean Finnegan, who is selling the freehold properties with colleague Craig Smith, sees an opportunity to acquire a fully tenanted investment property in one of Auckland’s fastest-growing locations.

“The units are occupied by Westgate Pharmacy and Mercy Radiology — key tenants of the medical precinct at the eastern end of the shopping centre,” says Finnegan.

“The precinct is anchored by the Westgate Medical Centre, which provides general and urgent medical care, alongside a physiotherapy clinic.

“The wider Westgate Shopping Centre comprises 88 tenancies with a mix of large format, convenience and speciality retail outlets in an open-air setting.

“The centre is a hub for shopping, dining and entertainment, including a cinema, a ten-pin bowling alley, mini-golf, restaurants and bars.”

Smith says Westgate is only 20 minutes from Auckland CBD and 20 minutes from Albany (via Western Ring Route motorways).

“It’s the new heart of the northwest and the gateway to this area, serving as a central hub for surrounding areas,” he says.

“The Westgate Shopping Centre forms a key part of the much larger Westgate Town Centre development.

“With $1 billion of investment being pumped into the Westgate area, the town centre is already a bustling hub that will have plenty more to offer as developments continue to evolve.”

The units generate combined net annual rental income of $282,680.56 net, with further details as follows:

  • Westgate Pharmacy occupies the 457.04sq m retail unit at 13F Maki St. Established in 1998, it opens year-round till 8pm every night. Qualified pharmacists are always on hand for health advice, while trained beauty therapists offer a variety of beauty services from an on-site clinic.

Westgate Pharmacy is signed to a five-year-and-10-month lease, earning $200,143 in net annual rent. Two rights of renewal of six years each extend the total lease term until March 2036, with market rental reviews every two years.

  • Mercy Radiology occupies the 183sq m retail unit at 13G Maki St, having direct access through to the Westgate Medical Centre. Founded more than 30 years ago at Mercy Hospital in Mount Eden, Mercy Radiology has since expanded to more locations throughout the greater Auckland region. The practice has pioneered the introduction of numerous radiology technologies, being the first in Auckland to offer MRI, 3T wide bore imaging and private mammography services.

Its Westgate clinic offers a range of services including X-ray, ultrasound, mammography and steroid-guided injections. Mercy Radiology is signed to a three-year lease returning $82,537 in net annual rent. The next market rental review is due in May next year, with final lease expiry in April 2020.

The freehold properties for sale are zoned Business Metropolitan Centre under the Auckland Unitary Plan, offering long-term redevelopment potential.

Smith points out Westgate is growing rapidly. “It’s estimated there’ll be a further 10,000 jobs and 4000 residents once development there is complete.”