Tenant trio to bank, bank, bank on

By Colin Taylor

West Auckland retail centre fully leased.

Westgate Banking Chambers are for sale in six titles, with three banks among the five tenants. Photo / Supplied
Westgate Banking Chambers are for sale in six titles, with three banks among the five tenants. Photo / Supplied

Three banks are among the five solid tenants in the Westgate Banking Chambers, which is for sale within the Westgate Shopping Centre in Main St, Massey.

"The offering on behalf of Westgate Properties Ltd comprises six prime retail and commercial units that are for sale individually, in six freehold strata titles, or as one block," says Bruce Whillans, managing director of Ray White Commercial who is marketing the property with the agency's investment brokers Stuart Bode and Henry Thompson.

The sale is by deadline private treaty closing 4pm on Wednesday, November 21, unless sold prior.

The building has leases in place to ANZ (which occupies two units), Westpac, National Bank, Chapmans Chartered Accountants and the Waitemata District Health Board.

"Fully leased, the entire offering is returning $787,115 plus GST per annum net," Whillans says.

ANZ occupies a 328.93sq m area on the ground floor, paying annual rent of $173,670, and 313.2sq m on the first floor for $70,631 per annum.

Westpac occupies 373.92sq m of ground space, paying $195,227 with three three-year rights of renewal. All three leases expire in April 2017, with four three-year rights of renewal.

The National Bank rents ground-floor space of 330.8sq m for $176,464 per annum on a lease expiring March 2014 with four three-year rights of renewal, while Chapmans Chartered Accountants pays $136,402 annually for first-floor space of 557.52sq m on a lease expiring March 2006, with one six-year right of renewal.

The other first-floor tenant is Waitemata DHB, paying annual rent of $34,718.69 for 183.38sq m on a lease expiring April 2017, with one five-year right of renewal.

Thompson says the banking chambers and the surrounding 45,000sq m Westgate Regional Shopping Centre are fully managed by NZRPG Management, which strives to ensure the centre maintains its position as one of Auckland's pre-eminent shopping destinations. NZRPG also manages the Highbury and Milford shopping centres on Auckland's North Shore, and the Fraser Cove Shopping Centre in Tauranga.

"This opportunity to directly own property within an institutional-grade retail centre under management is unprecedented in New Zealand," Thompson says.

"Participation in real-estate holdings of this quality are usually only available indirectly through investment in listed property trusts. This investment offer delivers the benefits of direct property ownership enhanced by the critical mass of a large and well-managed shopping centre.

"The block also benefits from a built-in level of rent growth through Consumer Price Index, and greater of CPI or market rent reviews, over a majority of the leases."

Completed in 2005, the property comprises three ground-floor freehold retail strata units, with three first-floor strata office units above.

Each of the ground-floor retail tenancies have bathrooms with shared male and female toilets on Level 1. A central lift and two separate stairwells provide access between the first level and ground floor.

Bode says the Westgate Centre, anchored by a Countdown supermarket, Farmers department store and The Warehouse, has 80 speciality retail and service retailers and about 1450 carparking spaces.

"Westgate is a successful regional shopping centre that draws from a rapidly growing population," he says.

"Situated only 15 minutes' drive west of downtown Auckland, the centre is strategically positioned at the junction of the Northwestern Motorway and Upper Harbour Motorway.

"Identified in the Auckland Plan as one of Auckland's key metropolitan centres, NZRPG has embarked on an scheme which will see 56ha of new mixed-use development opposite the Westgate Shopping Centre."

What's on offer

On offer: Westgate Banking Chambers
Location: Westgate Shopping Centre
Comprises: Six freehold titles
Tenants: Include three banks
Sales method: Deadline private treaty
Closing date: 4pm, Wednesday, November 21.

- NZ Herald

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