A block of eight fully leased shops, and the offices above them, in the popular Clendon town centre in South Auckland to the west of Manurewa, are for sale as a fully leased investment property.
The standalone property has eight separate tenancies in a two-level 1250sq m building on 1247 sq m of land at 10-14 Robert Ross Place.
The retail block will be auctioned on June 6 as part of Bayleys Total Property portfolio and is being marketed by Shane Snijder of Bayleys Counties and John Bolton of Bayleys Manukau.
The shops and offices are part of the larger Clendon centre that is anchored by The Warehouse, New World and McDonald's. Snijder says the centre has a good leasing history and all the ground level retail space is tenanted.
The property produces a net annual rental income of $399,682 with five of the leases having guaranteed rent increases through rent reviews based on the consumer price index plus 2 per cent. The tenants pay building outgoings totalling $42,309 plus a centre marketing contribution of $3757.
The ground-level retail tenants include Video Ezy, a laundromat and takeaway food outlets. The Ministry of Social Development has occupied 500sq m of upper-level office space since 2008. The building is fully air-conditioned with a lift to the upper level. A generous amount of car parking is shared by the tenants.
Between the building and the next retail outlet is a shared service corridor which can be accessed from either Robert Ross Place or the car park.
Bolton says the Clendon shopping centre works well for businesses because it is surrounded by a growing residential area and is close to major employment hubs, such as Manukau and East Tamaki.
"The property is easily accessed from Roscommon Rd, a local arterial road which links directly on to State Highway 20 and from there to the rest of the regional motorway network."
Clendon outpaced regional population growth from 2006 to 2011 and Statistics New Zealand has estimated that the suburb grew by 12.16 per cent compared with Manukau City's population growth of 10.6 per cent and the national average of 5.75 per cent. Although the rate of growth is projected to slow over the next five years, the suburb should still witness expansion.
The suburb's demographic is relatively young compared with regional and national figures.
It is projected that the median age of New Zealand citizens in 2016 will be 37.3 years. South Auckland's median is forecast to be 32 years while in Clendon the projected median age is just under 25.
Bolton says the property's location - which is in a successful suburban retail centre within one of the region's fastest-growing areas - makes it an attractive offering for an astute investor.