Big buys on the block out west

Both Valentines and The Warehouse have had a long-term presence at the Lincoln Centre. Photo / Supplied

Five retail properties and an office unit in the Lincoln Centre in West Auckland have been put on the market by Lincoln Centre Properties, and will be sold by tender and auction next month.

The properties being offered for sale, all of which are legally held by way of individual strata titles, are The Warehouse, Valentines family restaurant, a King Dick's Liquor Mart, Warehouse Stationery, MasterTrade and offices occupied by the ACC.

"While the properties all occupy high-profile locations in the Lincoln Centre, there are subtle differences between each, so we have developed a sales strategy taking into consideration the individual characteristics of each," says Murray Tomlinson of Barfoot & Thompson, who has been commissioned to sell the six properties with colleague Peter Jeromson.

The Warehouse, ACC office and MasterTrade properties will be offered for sale by tender, closing on December 8 at 3pm, and Warehouse Stationery, King Dicks and Valentines will be offered for sale by auction on December 10.

"The Lincoln Centre was one of the earlier large-format retail centres developed in the mid-1990s," Tomlinson says.

"At the time of the development some of its scale and some of its use characteristics were outside the parameters of the then-Waitakere City Council's operative district scheme. As a result, long-drawn-out negotiations ensued between the developers, the council and other affected parties who were primarily large retail investors in the city.

"Eventually agreement was reached and the development was completed around 1998. Other retailers located in the centre, but under separate ownership, include Noel Leeming, Bond and Bond and the BBQ Factory."

Tomlinson says the faith of the developers in the success of the trail-blazing project has been realised.

"The Lincoln Centre is regarded as a very successful development, with full car parks signalling the ongoing satisfaction of West Auckland shoppers.

"However, the real success of a development is the commitment by retailers to stay put. The Warehouse, which at around 6500sq m is one of the larger stores, is reaffirming its commitment to the centre by renegotiating a new lease for its premises.

"Warehouse Stationery was one of the original tenants as well, being regarded as its flagship West Auckland store. This store has also recently exercised its right of renewal to extend its lease."

King Dick's Liquor Mart, owned by the Waitakere Licensing Trust, is a more recent arrival, with its lease of 568sq m due to expire in mid-2011.

"Retailers of this calibre with the backing of strong parent companies are hard to find, and keenly sought after by investors," Jeromson says.

Valentines restaurant has also recently taken up a right of renewal under its lease, which generates a rental in excess of $200,000 per annum.

"The restaurant just can't be missed with its distinctive colours and design features and being located almost right on Lincoln Rd," Tomlinson says.

"A critical success factor to the financial viability of a family restaurant chain is ease of car parking and profile, and this location gives Valentines the necessary ingredients."

The last of the five retail properties is occupied by MasterTrade. The lease for this property is due to expire soon with no right of renewal.

"One of the features of this property is that while it is located at the rear of the Lincoln Centre development, it has the benefit of a significant frontage to Moselle Ave, which is a busy thoroughfare in its own right at the hub of the Lincoln Rd sector," Mr Jeromson says.

"This property opens up myriad opportunities for owner-occupiers, developers and investors. The premises could be remodelled and more aligned to the requirements of a retailer or they could be utilised as a distribution outlet or something similar."

The sixth property in the complex is the first-floor premises occupied by the ACC, which is described as "modern in appearance and layout to offer well-serviced professional accommodation".

The office space is accessed from a ground-floor lobby by a stairwell and a lift, and is serviced with air-conditioning and sprinklers.

"The success of this large-scale retail project in Lincoln Rd has inspired other large projects to proceed, like New Zealand's largest supermarket in the form of the relatively new Pak `N Save store and the new Mitre 10 Mega complex, which are both close to the Lincoln Centre properties," Jeromson says.

"Investors and developers have keenly sought opportunities in this vicinity over the last 10 years. In fact, demand got to a point in 2006 that bare land was being offered and sold at rates of around $1000 per square metre.

"More recently, spectacular auction results were achieved in the nearby Lincoln North Centre, where small shops were sold at auction with some achieving yields ranging from 5.5 per cent and upwards. Nobody would have dreamed of such rates when Lincoln Rd was primarily an orchard area just 20 years ago."

The retailers in the centre benefit from Lincoln Rd becoming the main arterial link between the motorway and Henderson, averaging 47,250 vehicle movements per day.

"It is also only a 20- to 25-minute drive from Auckland's CBD," Jeromson says.

Tomlinson says Waitakere City Council is pro commercial development within the boundaries of its territory, and has set a goal to reduce the percentage of Waitakere's workforce leaving the city each day from 60 per cent to 40 per cent.

"Achieving this goal will annually save over 100,000 journey-to-work kilometres, $70 million in direct transport costs, 10 million litres of petrol, 7000 tonnes of carbon and 1.3 million hours better spent in the economy, with families and within the community," he said. "Waitakere has 14 per cent of the Auckland region's population but produces just 8 per cent of its GDP. While this is a crude comparison, it gives some insight into why 58 per cent of Waitakere's workforce leaves the city each day to work, resulting in significant economic, environmental and social impacts."

Tomlinson says the growth of employment and business units has exceeded the city's population growth during the 10-year period to 2008.

"The fastest-growing sector in terms of employment in 2008 has been the social services sector, which grew by 2.1 per cent. This was mainly in the health services and community services industries. The city council contributes directly to economic development through business partnerships, advocacy, community development and investments in infrastructure."

Jeromson says the main zoning in the vicinity of the properties is designated "Working Lincoln Environment" under the Waitakere City Council's Operative District scheme.

"The zone allows for a wide range of uses, including retail, guest accommodation, office and other commercial uses," Jeromson says. "The scheme doesn't set out strict zones listing permitted and prohibited activities, but rather creates environments where a wide variety of activities may be carried out, so long as they don't negatively affect the environment."