Choice of two retail opportunities perfect for the small investor

Two retail shops on the corner of Lyons Avenue and Beach Rd. Photo / Supplied

Two shops on the North Shore and a Manukau retail and warehousing facility are likely to appeal to smaller investors when they are offered for sale as part of Bayleys Total Property auction of commercial and industrial properties next month.

On June 23, Brian Caldwell and Christina Heaven of Bayleys North Shore Commercial are auctioning a suburban retail investment property in Rothesay Bay comprising two retail shops prominently located on the corner of Lyons Ave and Beach Rd - the busy main coastal road that runs between Milford and Long Bay.

"This property is within a small suburban shopping strip with great access and good parking," says Caldwell. "Other neighbouring occupiers include restaurants, a dairy, bakery, dentists, beauty salon, English pub and takeaway outlets.

"The surrounding residential catchment is a predominantly high socio-economic area with nearby high decile primary and secondary schools."

The property is a 287sq m building on the southern side of Beach Rd facing north. The main corner tenancy of about 192sq m has a new four-year lease to a wine bar, with two four-year rights of renewal. There is a smaller tenancy of approximately 86sq m which houses a hair salon on a four-year lease from February 2010, with one four-year right of renewal. Both tenancies have two-yearly rent reviews and are producing current total net annual rental income of $74,000.

The 698sq m site is zoned Business 1 under the North Shore City Council's District Plan. The objective of this zone is to provide opportunity for suburban food and retail shopping to service local residential areas.

Across the harbour bridge and down in Manukau, a 380sq m bulk retail and warehousing property at 36 Cavendish Drive is also up for auction on June 23. Cavendish Carpet Court, which is part of the national Carpet Court retail chain, has been an occupant for more than 16 years and has recently renewed its lease.

The property is being marketed by Angeline Wong and Trevor Duffin of Bayleys North Shore Commercial in conjunction with Katie Wu of Bayleys Manukau.

Wong says the offering will appeal to smaller investors, having a net annual rental income of $35,555.

It is located in an established bulk retail complex of 14 businesses which has a substantial shared carpark and is located opposite The Warehouse store. The property is about 500 metres from the Cavendish Drive intersection with the Southern Motorway and Te Irirangi Drive.

Wu says Cavendish Drive is a popular location for bulk retailers and trade display showrooms.