How convenient - gateway to Albany

The block of fully tenanted convenience shops on the corner of State Highway 17 and Oteha Valley Rd, Albany. Photo / Supplied

A modern block of fully tenanted convenience shops on a corner site considered to be at the gateway to the ever-expanding Albany city is up for sale for the first time since it was completed three years ago.

Simon Aldridge, of Bayleys North Shore Commercial, says the complex on the corner of State Highway 17 and Oteha Valley Rd, is producing total net annual income of $333,205 from five tenants, with the largest being the high profile GPK Restaurant, which has an eight-year lease.

Aldridge is marketing the property with Tony Chaudhary of Bayleys Manukau, with tenders for the complex closing on September 9.

The property is up for sale either in its entirety or investors can opt to tender for one or more of the shops on a freehold unit title basis. The individual units have annual net rentals ranging from $36,240 to $137,278 for the GPK restaurant.

Aldridge says the vendor, Dave Fermah of Kiwi Property Trust, also operates a remanufactured timber products business which has more than doubled in turnover in the past year. He plans to divest the retail complex to fund its export expansion.

Fermah has developed other retail properties around the country, including an eight-store retail development in Dominion Rd, Auckland, and a six-store block in Whakatane. He chose the Albany site for its high profile exposure and closeness to facilities such as two private schools, a new high school and Massey University.

"It is hard to get sites like this where there are no other buildings on the other corners," says Aldridge. "Directly opposite on all corners are reserves."

Kiwi Property Trust built the 4548sq m site up by half a metre to provide the maximum possible profile for any signage, which can be clearly seen by the 40,000-plus cars passing daily.

"It was originally meant for a service station so there is good access and it provides parking for up to 54 cars," says Aldridge. "Convenience shops like these operate best on the outskirts of a main shopping mall like Albany because people don't want to be bothered driving to a large complex for one or two items."

Occupants of the 745sq m building include three food-and-beverage outlets, a flower shop and video store. Their leases vary from six to eight years and all have rights of renewal.

Aldridge says the complex has been well designed to be low maintenance with a loading dock in one corner to allow service vehicles access to all five units. All major amenities are available to the property, including LPG gas.

The immediate area is growing rapidly with consents granted for hotels, office parks and bulk retail.

Massey University provides a large customer base for the food retailers and the North Harbour Stadium, which is a host venue for the Rugby World Cup next year, is directly opposite.

Aldridge says nearby Westfield Albany has since proved to be one of the most successful shopping malls in the country, partly due to the strong catchment area that Albany creates.