Trio of prime portfolio properties
691 Manukau Rd, Units S&T. Photo / Supplied
JLL is ending a successful year by featuring three retail outlets and a modern industrial complex in its current portfolio of properties for sale.
In suburban Royal Oak, two investment retail units with well-established tenants are being exclusively marketed by capital markets director John Binning who, with colleague Ian Hall, is selling Units S&T at 691 Manukau Rd by tender closing at 4pm on Monday, December 3.
“Due to the configuration of these freehold unit titles, on the ground floor of the three-level Royal Oak shopping mall, they are not for sale separately, but as one lot,” Hall says. “Unit S comprising a corner shop, is tenanted by a Unichem Pharmacy, with the adjacent Unit T leased to an ANZ Bank branch.”
The two units generate total yearly income of $179,842 plus GST and have a total area of 431sq m. The Unichem Pharmacy, part of a national network of over 250 pharmacies, leases 267sq m in Unit S and part of Unit T for annual rent of $114,908 plus GST; while the ANZ Bank pays $64,934 per annum plus GST for part of Unit T of 164sq m.
“The pharmacy is on a six-year lease from March 1 this year with three six-year rights of renewal and a final expiry of 2042 if all rights of renewal are exercised,” Hall says. “Rent reviews are provided for on March 1, 2021 and on the same date each year thereafter with 1.5 per cent increases.
“The ANZ recently renewed its lease on June 15 for a further four years, with two three-year rights of renewal – taking the potential final expiry to 2028 along with rent reviews to market in 2020, 2022 and 2025,” Hall says.
Binning says the Royal Oak Mall has been the business hub of the area since its completion in 1988 and subsequent additions in 1993 and 2009.
“The shopping centre, with a Business Town Centre zoning and a 72.62 per cent New Building Standard seismic rating, is on busy Manukau Rd just north of its main intersection with Mt Albert Rd – another major city arterial route,” Binning says. “The Royal Oak Shopping Centre and supermarket draw customers from an affluent suburban area that includes One Tree Hill, Greenlane and Onehunga.
“The two main roads, have regular bus services with several stops nearby, while the shopping centre is about 2.4km from Onehunga railway station and 9km from the Auckland CBD.”
10G Piermark Drive, North Harbour Industrial Estate. Photo / Supplied
Binning says the Royal Oak retail outlets are equipped with fire detectors and fire sprinklers.
Across the other side of Auckland, on the North Shore, JLL is marketing an industrial complex for sale in the heart of the North Harbour Industrial Estate.
“This is a well presented office and warehouse building,” says David Mayhew, Manager of JLL North Shore Sales & Leasing who, with colleague Jaye Miller, is marketing 10G Piermark Drive for sale by expressions of interest closing at 4pm on Thursday December 6.
“It was built by the owner in the late 1990s and for its long standing tenant, AB Note Ltd which manufactures debit and credit cards, identification and secure access products,” Mayhew says.
“The property is stratum-in-freehold and sited towards the rear of a shared 1.0502ha development area, in a location chosen by the tenant to provide more security for its business. While ‘the bones’ of the property are a typical office and warehouse building, similar to many in the area, there has been significant fit-out to suit the tenant’s high-value business operation.
“Most of the warehouse has a dropped ceiling and is laid out with work rooms and manufacturing areas. The total area is around 1400sq m made up of an 870sq m high-stud warehouse, ground floor office of 265sq m and first floor office of 265sq m. The property for sale includes 28 car parks and an area of 365sq m of spare land adjoins the warehouse with this title having exclusive use of the land.”
Miller says the property, Zoned Light Industry, earns $188,000 per annum net plus GST and outgoings “which we believe is below market even compared to a more generic industrial units of the similar size and layout.
“The tenant is just over five year into the current into a 10 year lease and given the large amount of capital expenditure in the property and it’s potential for expansion if required, AB Note Limited has expressed a great desire to stay long term at this property.”
Miller says Piermark Drive runs between the two large arterial roads - Bush Rd and William Pickering Drive. “The property is within a five minutes’ drive of the motorway system, giving easy access to the new Western Ring Route that links through to the new Waterview Connection to the Auckland Airport. Also nearby is the Northern Motorway section of State Highway 1 and the Albany Centre.”
Miller is also involved in another property sale, back over the Harbour Bridge, in Eden Terrace.
“Leased to a popular Hell Pizza franchisee, it has full road frontage onto busy Symonds St ensuring plenty of marketing for the tenant,” says Miller who, with colleague Kevin Reardon, is marketing Shop 6, 160 Symonds St, for sale by expressions of interest closing at 4pm on Thursday December 13.
Shop 6, 160 Symonds St, Hell Pizza outlet. Photo / Supplied
“This small, rectangular-shaped, retail outlet, is fitted out in line with Hell Pizza’s franchise requirements; and is within a strip of commercial retail shops on the east side of upper Symonds St that is attached to a greater residential block known as The Madison. It’s a well-known and established block that has been well-maintained and looked after.
Shop 6, with a floor area of 20sq m, occupies a unit titled land area of about 80sq m and has a Business Mixed Use zoning.
The Hell Pizza lease on the stratum unit titled property initially commenced on October 5, 2005, but was renewed on June 17 this year for an initial period of five years with the retailer paying annual rent of $54,304.42 plus GST plus operating expenses. Two rights of renewal of five years each give a potential final expiry date of June 17, 2033; with market rent reviews provided for every two years commencing September 2, 2019. The property has three private car parks.
Reardon says this portion of Symonds St is in the centre of a city fringe area rebranded as ‘Uptown’. “It’s a new suburb marked for growth and it’s turning into a mixed residential and commercial hub,” he says. “A number of residential developments are underway in the surrounding Eden Terrace area along with Auckland council infrastructure upgrades such as City Rail Link which will see a new Mt Eden train station constructed within walking distance of Shop 6.
“Symonds St serves as a major city bus route and the location has quick and easy access to both the State Highway 1 and State Highway 16 motorways along with Queen St, Mt Eden, Ponsonby and Newmarket.
“The Hell Pizza outlet has extraordinary exposure to passing traffic with Auckland Transport data showing an average traffic count of 19,151 daily for Symonds St based on a Monday- Friday survey.
“Amenities within a 2km radius include the University of Auckland, the Auckland University of Technology, and the Newmarket and Auckland CBD shopping areas.
“Importantly, this Hell Pizza outlet is in a high foot traffic area, close to university accommodation buildings and large apartment blocks, which is where a lot of the tenant’s business comes from. The franchisee reports high weekly sales that are regularly within the top three outlets for Auckland.”