Units in rapidly growing Westgate
The six units at 575 Don Buck Rd are for sale individually. Photo / Supplied
Brokers say a new retail development in Westgate represents an opportunity to invest in one of Auckland’s most dynamic new communities.
Six high-profile units at 559-577 Don Buck Rd are for sale individually, allowing investors to buy part or all of the fully tenanted development.
They are being marketed by Colliers International brokers Shoneet Chand, Peter Kermode, Euan Stratton and Deborah Dowling.
Chand says the retail centre is on a high profile site, in a rapidly expanding area.
“Westgate is undergoing astonishing growth, driven by billions of dollars of investment from private developers and local and central government,” he says.
“This new development was completed in November 2016 by one of the most experienced retail developers in Auckland.”
The property has a total net lettable area of 1991sq m and includes a childcare centre, Sal’s Pizza and Lone Star restaurants, a bakery, dentist and barber. All are being offered individually, with annual returns ranging from $39,744 to $286,000 net.
Chand says the site is strategically located on Don Buck Rd just to the south of the intersection with Fred Taylor Dr, and near Pak’n Save.
Developments centred around Westgate include new schools, community facilities, open spaces, new roads and better transport links.
Auckland Council will invest $300m in Westgate over the next 10 years in what is estimated to be a combined $1 billion total investment.
It estimates the first stage developments will generate 20,000 new jobs.
Kermode says the high-quality project has been designed to stand the test of time using low maintenance and hard wearing materials.
The units are built of reinforced concrete slabs and precast panels.
The exterior features a combination of concrete, timber trusses, timber cladding and a glass facade with aluminium framing. Leases on all six properties are backed by bank guarantees and include fixed annual rent increases.
All but the anchor tenant’s lease are also backed by personal guarantees.
The largest two units — tenanted by the Learning Tree Childcare Centre and Lone Star restaurant — are being sold individually by deadline private treaty with offers closing on March 8, unless sold earlier by negotiation.
The childcare centre is on a 15-year lease earning $286,000 per annum net, with two 10-year rights of renewal.
The 1115sq m centre is run by an established operator with multiple centres and has a state of the art fit-out licensed for 110 children.
Lone Star is on a 12-year lease generating $221,750 net plus GST per annum, with two six-year rights of renewal.
The remaining four properties will be individually auctioned on March 14, unless sold earlier by negotiation.
Sal’s Pizza, in a 73.5sq m unit, is on a seven year lease earning $40,480pa net, with two seven-year rights of renewal.
The Khai Tich Lim bakery, also in a 73.5sq m unit, is on an eight-year lease generating $40,480 net plus GST per annum, with two four-year rights of renewal.
The 73.5sq m barber shop is on a six-year lease earning $39,744pa net, with two four-year rights of renewal. The 105.5sq m dental centre is on an eight year lease returning $55,620pa net, with two four-year rights of renewal.