Opportunities at opposite ends of Auckland
The Asian Supermarket on Great South Rd, Papakura. Photo / Supplied
Two retail properties at opposite ends of Auckland will go under the hammer next month as part of Bayleys’ latest Total Property portfolio auction.
The first and larger of the two is an Asian Supermarket on a 2023sq m Mixed Use zoned site at 303-305 Great South Rd, Papakura.
It is being marketed by Quinn Ngo, Matt Lee and James Chan from Bayleys’ International Division in conjunction with Piyush Kumar of Bayleys South Auckland. It will be auctioned on September 13, unless sold prior, in Bayleys central Auckland auction rooms.
“This is an excellent opportunity to purchase a standalone investment property with extensive frontage along Great South Rd and longer-term development potential,” says Quinn Ngo.
The property has been occupied for more than a decade by Saveway Supermarket, an Asian grocery store with a long-established presence in Auckland. Its four-year lease from April 2017, with three further four-year rights of renewal, is generating net annual rent of $161,740 plus GST.
Ngo says the property is well-positioned on Great South Rd’s main retail strip with a bus stop close by and the Papakura train station about 250m away.
“A strong customer base is provided by a large and growing catchment area, with Papakura projected to be one of Auckland’s fastest growing suburbs in the medium to long term.”
The Grange retail convenience centre in Warkworth. Photo / Supplied
Built in the late 1990s, the 734sq m building is at end of a block of shops.
Chan says it takes up less than half of the rectangular site with room for close to 30 car parks plus a loading bay and trolley racks. Site access is directly off the main road, with easily accessed entry and exit points.
The under-utilised site, coupled with its flexible Business Mixed Use zoning, means it has future development potential up to a maximum building height of 18m, says Chan.
“The zoning permits a wide range of commercial and residential activities or a combination of these with commercial on the lower levels and residential above.
The zoning is designed to encourage more intensive development around Papakura’s town centre.
Also scheduled for auction on the same day is a 119sq m property in the Grange retail convenience centre at 67 Auckland Rd (SH1), Warkworth which is being marketed by Lee and Chan in conjunction with Henry Napier of Bayleys’ Warkworth office.
The premises is being fitted out for occupation next month by Vivo Hair & Beauty, a well-established national hair and beauty brand which has taken an eight-year lease at initial net annual rental of $49,100.
Lee says the company has experienced strong growth over the past seven years and now has 50 salons throughout New Zealand including 20 in Auckland.
It recently won the Best Hair Salon category in Bauer Media’s New Zealand Best in Beauty 2017 awards.
Lee says the lease has built-in rental growth with annual rent increases of three per cent and additional rent reviews to market in March 2021 and in March 2025 should Vivo Hair & Beauty exercise its one four-year right of renewal.
Lee says the property encompasses two units in The Grange (Units 22A & 22B) of just over 59sq m each which longer term provides flexibility to subdivide into two tenancies and potentially lease and/or sell each unit title individually.
“However, in the medium term the property offers an easy care passive investment opportunity in a major growth location, with Warkworth’s population forecast to increase to 20,000 over the next 30 years. Similar expansion is expected in the wider surrounding coastal catchment area of permanent and holiday residences, particularly once the Puhoi to Warkworth motorway extension from Auckland is completed in 2021.”
The Grange is anchored by McDonald’s and a BP Service Station and comprises a mix of national and local businesses with a strong emphasis on food and beverage premises. Other nationally-branded occupants include Domino’s Pizza, Coffee Club and Bottle-O. The immediate surrounding commercial area has a range of established businesses including Mitre 10 Mega, Carter’s, Repco and VTNZ.
Bayleys has sold 17 units in the centre. The three most recent sales are featured in this week’s Around the Block column.