Amodern, multi-tenanted retail investment of seven newly renovated retail units is available in the Highland Park retail precinct of Auckland's Eastern Bays.
"With few comparable retail investments currently available, 20 Dunrobin Place represents an attractive opportunity for astute investors," says Andrew Brown, investment sales director for JLL, who is exclusively marketing the property for sale through expressions of interest, closing at 4pm on September 18.
Each of the seven units forms part of a strata estate in freehold with each having their own title. Tenancies within the complex, which has a total rentable area of 2100sq m, range from 87.5sq m to 1000sq m, with some of the leases having the benefit of contractual rental increases.
Three units are leased to national retailers - The Coffee Club, Pita Pit and Tank Juice. Other tenants include Anytime Fitness, Discoveries Educare and a dance school. The lease of the seventh unit, of 87.5sq m, is under negotiation.
Together the units earn a net annual rent of $540,000 and have a weighted average lease term of eight years.
Brown says a major driver of value in the property is that each unit has its own freehold title. "This provides the purchaser with flexibility should they wish to sell some units at a later date, while retaining an interest in the complex." He says the complex has an excellent location within the Highland Park retail precinct. It is adjacent to Pakuranga Rd and opposite Pakuranga College.
"It is in the densely populated catchment of Highland Park and the surrounding eastern bays. As a result, the property benefits from excellent levels of visibility and the draw of complementary services and amenities within the complex."
Brown says Highland Park is one of Auckland's most consolidated suburbs, bordering the largely residential Eastern Bay suburbs of Farm Cove, Pakuranga and Howick.
"Together these urban areas provide a significant catchment which generates considerable consumer pulling-power.
"These factors, alongside the strong demographics presented by Highland Park and its environs, point to a positive outlook for the property," he says.
Brown says redevelopment of the local cinema has rejuvenated the centre with good quality, nationally renowned brands now being present. "The centre now holds a dominant retail position within this district which gains exposure from high traffic."
He says the wider Highland Park retail precinct provides a substantial number of parking spaces for the seven units. "This is an attractive feature for tenants and their customers which can aid tenant retention and shorten leasing up periods."
Since the 2006 Census, the Howick local board area has seen a 12 per cent increase in population and a further 14 per cent population growth is expected before 2031.
"This is turn has caused retail trade businesses within the area surrounding 20 Dunrobin Place to rise by 40 per cent between 2003 and 2013."
Brown says the overall economic climate points to a strong performance in the retail sector throughout the country.
"Total retail sales recovered after the global financial crisis and have since grown by a total of 17.6 per cent - or 3.3 per cent per annum.
"This is a faster rate of growth than the overall economy as a whole and faster rate of growth than almost all of the OECD countries over the same period.
"As the economy continues to perform well we would expect this rate of growth to continue over the medium-term to the benefit of these units."