Takapuna Halls Corner property portfolio for sale

12:02 PM Monday November 25, 2019 True Commercial

The 2,327sq m site sits on four titles with favourable Metropolitan Centre zoning, allowing for buildings up to 24.5m in height.

 

Takapuna’s Halls Corner property portfolio is on the market, providing a chance to secure a high-profile investment on a landmark future redevelopment site.

The multi-tenanted property portfolio at the intersection of Hurstmere Road and Lake Road is being sold as three separate offerings, allowing investors to buy one, two or all three.

Director Shoneet Chand of Colliers International, who is marketing Halls Corner with Directors Matt Prentice and Euan Stratton, says it is a chance to invest in one of the most tightly held locations on Auckland’s North Shore.

“Halls Corner will have wide appeal to investors, family trusts and future developers. It represents a chance to acquire a true landmark in one of Takapuna’s most prominent locations.

“What makes Halls Corner particularly attractive is the ability to purchase part or all of the portfolio, allowing investors to buy into a tightly held area.

“Each of the three offerings is occupied by between four to seven tenants, providing a solid stream of split-risk income.

“The overall portfolio comprises 17 tenancies that return more than $1.48 million in net annual rent. Strong tenant covenants are provided by national brands like TSB Bank, House of Travel, AMI and Otto Woo.

“Each individual offering is an ideal split-risk investment; taken together, Halls Corner is a formidable investment portfolio and one of the best future redevelopment opportunities in Takapuna.

“The 2,327sq m site sits on four titles with favourable Metropolitan Centre zoning, allowing for buildings up to 24.5m in height.

“A new owner has the opportunity to explore two redevelopment schemes for the site, both based on a seven-level mixed use development with basement car parking.

“This is without doubt the most significant property portfolio in Takapuna to come to market this year.”

Prentice says Halls Corner will benefit greatly from significant public investment in the area.

“Auckland Council has committed to a substantial programme of urban regeneration in Takapuna, which it has identified as a key metropolitan centre for growth and development.

“The work includes upgrades to Hurstmere Road, which will become a one-way street between Anzac Street and Lake Road, with a redesigned streetscape prioritised for people and cyclists.”

Prentice says there is already significant public amenity in the area, including popular Hurstmere Green – a relaxing open space that provides direct access to Takapuna Beach.

“The beach is key to Takapuna’s appeal as both an affluent residential suburb and the North Shore’s premier commercial centre.

“Takapuna provides excellent shopping, dining, hospitality, recreation, housing and employment in a beachside setting only 9km from Auckland’s CBD.

“This high level of amenity is set to drive huge growth in the area, with an estimated 15,000 extra residents and 15,000 employees by 2040.

“A massive influx of residential development is already transforming the Takapuna skyline, with a number of apartment buildings between four to six levels either completed or under construction.”

Stratton says the two development schemes commissioned by the vendor both include apartments.

“The first scheme includes 1,960sq m of retail, 3,590sq m of office space, 48 apartments and 97 basement car parks.

“The second scheme has 2,410sq m of retail, 76 apartments and 104 basement car parks.”

Halls Corner is for sale as three separate offerings by deadline private treaty closing at 4pm on Tuesday 17 December, unless one or all properties sell earlier.

The first investment offering, at 2 Hurstmere Road, comprises seven tenancies over 625.87q m. It is currently returning $496,043.95 per annum, with a mix of fixed and market rental reviews.

Anchored by TSB Bank, the offering also has a diverse mix of six smaller tenants of between 39sq m and 86sq m – 3 Wise Men, Umi Sushi, Otto Woo, Oporto, Cactea and Nature Reflexology and Massage.

TSB Bank occupies the 224sq m corner tenancy, at the intersection of Lake Road and Hurstmere Road. The bank is signed to a 12-year lease, expiring in October 2026, followed by a 12-year right of renewal.

Men’s clothing retailer 3 Wise Men occupies a tenancy of 60.68sq m on the Hurstmere Road side of the property. It is signed to a six-year lease until October 2021, with two three-year rights of renewal.

The second investment offering, at 4 Hurstmere Road, comprises six tenancies over 372.52sq m. It returns a total of $345,237.48 a year in rent, with a mix of fixed and market rental reviews.

Tenancies of between 37.42sq m and 87.86sq m are occupied by children’s clothing retailer Grey and Wild, fashion retailer Ruby, creative agency Libby and Ben, Tank Juice, Holy Shot Espresso and a small commercial lease.

The third offering, located 20 Hurstmere Road, comprises four tenancies, plus a car park leased on a month-by-month basis.

It has a net lettable area of 1,416.17sq m and is currently tenanted by AMI, House of Travel, Madam Woo and Superette. It returns $643,225.13 a year in rent, with a mix of fixed and market rental reviews.

Madam Woo, the acclaimed restaurant of celebrity chef Josh Emmett, occupies a 369.9sq m tenancy fronting Lake Road. It is signed to a 10-year lease expiring in June 2025, followed by two five-year rights of renewal.

Fashion retailer Superette occupies a 338.98sq m unit adjacent to Madam Woo. The six-year lease expires in July 2021, followed by a six-year right of renewal.

House of Travel occupies a 127.11sq m tenancy on Hurstmere Road, while national insurer AMI occupies the neighbouring 197.36sq m tenancy. Both are signed to six-year leases expiring in July 2021. House of Travel has two six-year rights of renewal, while AMI has three three-year rights of renewal.