Property with potential on busy Porana Rd
The Epicentre has extensive frontage onto Porana Rd.
A large Wairau Valley retail and office unit in a substantial bulk retail complex is now for sale, offering future income growth potential or an owner-occupier opportunity.
Located at 75 Porana Rd, the high-profile property comprises at 1883sq m unit in the bustling Epicentre Retail Park.
A large retail outlet on the ground floor is occupied by the Appliance Shed with two office units above.
The property is one of the larger retail offerings in Bayleys’ latest Total Property portfolio, providing current net annual rental income of $317,300 plus GST.
It is being marketed by Tonia Robertson and Chris White of Bayleys North Shore Commercial and is for sale by tender closing on Thursday, June 2, unless sold earlier by negotiation.
“The unit is divided into three separate tenancy areas, each completely self-contained,” says Robertson.
“The ground floor has a high-stud bulk retail showroom and warehouse plus a small office and amenities area with a total floor area of 1472sq m. It has been tenanted by home electronics and appliances retailer Appliance Shed Limited since the Epicentre opened in 2005.
The first floor has two office tenancies, with 168sq m occupied by Otoy NZ Ltd and 243sq m of vacant space.
“There is genuine add-value upside with this property. Although the leasing of the vacant office area has been put on hold while the sale process is underway, there is tenancy interest in this space, which if occupied would lift total annual income from the building to a projected $353,750.”
The Appliance Shed is on a renewal of its lease until July 2017 but with no automatic further right of renewal. This provides considerable flexibility in respect of the ground floor and a variety of options, says Robertson.
“The new owner could attempt to negotiate a more permanent long-term lease with the tenant. Or they could look at the potential to possibly obtain a higher rental by converting this large amount of space into smaller retail tenancies, subject to necessary consents.
“Alternatively, the ground floor could have significant appeal to an owner-occupier wanting to secure a substantial amount of high profile space in the Wairau Valley and join numerous large, well-known businesses in the area.”
In this aerial view depicting the setting, the Appliance shed is the yellow unit at right.
The Epicentre Retail Park was formerly the Wilson & Horton Security Print factory, constructed in 1982.
In early 2005, it was converted and upgraded to eight unit titles with 11 tenancies on a 1.1603ha site with 166 carparks.
Unit C, the property for sale, has an allocation of 49 carpark spaces as part of a large customer parking area in front of the premises and there is also vehicle access to the rear to a goods delivery area and staff parking.
The building has a ceiling ducted ventilation system as well as wall mounted heat pumps and is fully equipped with fire sprinklers.
“The Epicentre has extensive frontage on to Porana Rd of approximately 120 metres and is slightly elevated from the road meaning it has excellent exposure to the reasonably heavy flow of traffic along the road,” says Chris White.
“Unit C’s profile is enhanced by its corner position and the Appliance Shed is well established, having commenced trading in 2002.”
The Appliance Shed has three other stores in Auckland — Henderson, Manukau and St Lukes — and specialises in selling manufacturer’s seconds, ex-showroom demos, end-of-lines and surplus stock. It was purchased by Fox Rentals Limited — the owner of Thorn Rentals NZ Limited (trading as DTR) — in 2012.
The other tenant, Otoy, is a software company making and distributing 3D content which last year exercised the first of two two-year rights of renewal.
White says Unit C is next to computer appliance store PB Technologies, which like the Appliance Shed attracts high numbers of customers, with other nearby tenants including Direct Office Furniture, Relish Cafe and Silver Bell Supermarket. A modern 20 unit warehouse development is located at the rear of the Epicentre building.
Over the years, Wairau Valley has changed from a largely industrial business precinct, Robertson says.
“The Valley now has a much wider mix of businesses which also includes supermarkets, garden centres, giant hardware stores, a variety of other home improvement stores and vehicle repair and sales businesses.
“This has resulted in an increase in property values as the location has become increasingly sought after by a diverse range of substantial tenants.”