Large Lincoln unit on high-profile corner

View of a large unit divided into three retail outlets that is for sale in the Lincoln North Shopping Centre in Henderson. Photo / Supplied

Following the reconfiguration of its ground floor into three retail outlets, a large unit in the Lincoln North Shopping Centre in Henderson has been placed on the market in Bayleys' latest Total Property portfolio.

The 890sq m unit, in a prominent corner location, was not included in Bayleys' auctioning of 22 units in the centre last year when all sold individually for a total of more than $30 million.

Cameron Melhuish, Matthew Bayley, and James Chan of Bayleys Auckland are marketing the unit which is generating total net annual income of just under $300,000 by tender closing on June 30 unless sold prior by private treaty.

Melhuish says the unit previously housed a pub and restaurant but a decision was made to reconfigure it into three smaller retail units with professional commercial space above.

Kitchen design, manufacturing and installation company Moda is to occupy the largest ground floor outlet of 179sq m on a six-year lease beginning in August, with one six-year right of renewal. The company has two outlets in Auckland and one in Hamilton. Lincoln Mall Pharmacy occupies a 150sq m tenancy on a nine-year lease which began in March and also has one six-year right of renewal.

Lincoln Sushi, trading as St Pierre's, will occupy 90sq m of the ground floor space on a nine-year lease starting in August with two rights of renewal of six years each. St Pierre's Sushi which started in New Zealand in 1993 has quickly grown to more than 25 outlets throughout the country.

"All the three leases have two-yearly rent reviews," Melhuish says.

The 250sq m Level One space is being renovated and Melhuish says it receives excellent natural light because of its corner position and is complemented by a large 177sq m deck and has its own separate, ground-level access. There is a two-year lease over this space starting in August.

Other income comes from an ASB ATM machine and from three signs which Melhuish says reflects the corner unit's high-profile position within the centre.

Completed in 2006, the Lincoln North Shopping Centre has attracted many national and international retailers including; ANZ , Westpac and BNZ banks, Restaurant Brands (KFC and Pizza Hut), NZ Post Shop, Animates, Lollipops, Avanti Cycles, Video Ezy, TAB, Subway, Dunkin Donuts, SuperCheap Autos and Columbus Coffee.

The property was previously home to a Pak'nSave store which relocated to become one of the Southern Hemisphere's largest supermarkets, on the other side of Universal Drive. This site also houses one of New Zealand's biggest and busiest Mitre 10 Mega stores and a large carparking area.

The 1.67ha site on which the Lincoln North Shore Shopping Centre is located has wide frontage and substantial exposure to both Lincoln Rd and Universal Drive, two of West Auckland's busiest arterials. There are entrances and exits to the centre from both roads which feed into a substantial parking area for 236 cars. The buildings wrap around the customer carparking in an L shape, with a sealed lane towards the rear of the site providing access to loading bays and staff carparking.

Melhuish says heavy traffic flows on Lincoln Rd - 47,250 cars a day on average - along with a sizeable and growing surrounding residential population, has prompted significant retail and commercial office development in the area.

Lincoln Rd also links to the Northwestern Motorway nearby effectively extending the patronage catchment pool to the Greater Auckland area, he says.

"The fact Lincoln North Shopping Centre has attracted numerous national and international tenants and is fully occupied is testament to the strength of the location and calibre of the finished product which includes landscaped areas throughout."

"This was also reflected in the very strong bidding competition that was generated in the units in the centre which we auctioned last year and sold at yields ranging from 5.05 per cent to 12.5 per cent."

The largest unit to sell in that auction was a 1210sq m bulk retail outlet leased to Animates pet and veterinary care store which went for $2,750,000 at a 10.3 per cent yield.

Chan says Unit 3 is a well-presented commercial property.

"It represents a prime mixed-use and multi-tenanted commercial investment opportunity which would be a valuable addition to an astute investor's portfolio."