Ye Olde Bailey for sale
Ye Olde Bailey, 272 Ti Rakua Drive, has a 10-year lease from March 2017. Photo / Supplied
A bar and restaurant and gaming lounge in a commercial complex in East Tamaki is for sale, having a long-term lease in place to its current occupant.
The 443sq m unit-titled building, at 272 Ti Rakua Drive, East Tamaki, goes up for auction on August 2 — unless sold earlier.
It is part of Bayleys’ latest Total Property portfolio, and is being sold by Tony Chaudhary, Janak Darji and Amy Weng of Bayleys South Auckland office. The property, trading as Ye Olde Bailey, has a 10-year lease from March 2017, which is currently producing net annual rental income of $118,000.
The lease has fixed rental increases of five per cent every two years, commencing in March 2021, and one 10-year right of renewal which, if exercised, would take the final expiry out to 2037.
“This offering has many features which make it the ideal passive investment,” says Chaudhary.
“It has a very long lease to a well-established tenant with assured rental growth in a recently refurbished building with an A+ seismic rating. It’s also in a fast growing south east Auckland location with high visibility to a very busy arterial road.”
Chaudhary says the property is located on a high profile site on the corner of Ti Rakau Drive and Burswood Drive. It is centrally positioned in a complex of commercial and light industrial units, with dual entry points from both streets.
The downstairs area of the two-level building for sale has been fitted out as a bar and gaming lounge with 18 gaming machines. Upstairs is a self-contained office area that has recently been sub-leased to a beauty salon until August 2020. The property has exclusive use of nine carparks directly outside the building.
The property has long operated as a bar, lounge and restaurant with the large number of gaming machines underpinning the income, Chaudhary says.
“Both the landlord and the tenant contributed to a sprucing-up of the premises when the new lease was entered into earlier this year, so the building is in good condition.”
Other units within the complex accommodate a variety of tenants including a Bikram yoga facility and an Indian restaurant and the already strong location has been given a further boost by the opening of a new Mercedes Benz dealership across the road, says Chaudhary.
Other high profile tenants close by include Fruit World, a Z service station and a Bunnings hardware store.
About 100m to the north is the Burswood Drive residential catchment which is serviced by a wide range of commercial activities located along Ti Rakau Drive. This is the principal arterial route linking Pakuranga to the west with Botany and its town centre and surrounding commercial developments, around 1.5km to the east of the property for sale.
Ti Rakau Drive also links with Te Iriangi Drive, providing an alternative route to Flat Bush and Manukau areas to the south.