Commercial and convenient

Eden St building (left) houses three businesses; the Dilworth Ave property was once a sorting centre. Photo / Supplied

Two commercial properties in Remuera and Newmarket are being offered for sale in Colliers International's National Portfolio offering among a number of properties due to go under the hammer at 11am on Wednesday, March 17.

The first property, 2 Dilworth Ave, Remuera, is being marketed jointly by Colliers International and Barfoot & Thompson for ABC Holdings NZ.

It was taken to market in the first quarter of 2009 under instruction from ABC Land Holdings and several offers were submitted.

However, the property was pulled from the market due to factors surrounding the sale of the ABC's New Zealand subsidiary.

Now, under instruction from McGrath Nicol, the Australian receiver for ABC Childcare Australia, the property is back on the market with clear instructions from the receivers to sell.

The building sits on a high-profile 981sq m site on the corner of Remuera Rd and Dilworth Ave, at the beginning of "medical mile" that leads down to Newmarket.

The 545sq m building was built in 1912 and used for a large portion of its life as a mail sorting centre.

In 1987, when the Post Office became Telecom and NZ Post, the building was no longer needed as a sorting centre.

"It was purchased in 2007 by ABC Childcare (NZ) Ltd which has put the property up for sale because it is surplus to requirements and because the Australian parent company is in receivership and requires funds from throughout the group," says Colliers broker Bryce Holmes.

All 127 New Zealand facilities of ABC Childcare (NZ) Ltd are trading and solvent, Holmes says

Holmes says the building has architectural merit, with a 3.5m stud height, thick concrete walls and steel window frames that give the interior space character and charm.

However, given its age and condition the building requires an upgrade to maximise its location and the property itself.

The property has close access to the Southern Motorway at the St Marks Rd onramp. In addition, it is close to public transport, with Newmarket station and many bus stops within easy walking distance.

"Whether for commercial or residential redevelopment, this period property has all the characters and features to be turned into a stunning landmark building," says Colliers broker Peter Kermode

Also up for auction on Wednesday, March 17 is a freehold property at 15 Eden St in nearby Newmarket which is marketed by Holmes and Colliers' colleague Grant Magill.

"It's a significant property bounded by Newmarket's Broadway, Morrow St, Gillies Ave and Teed St and is adjacent to the Two Double Seven retail complex," says Magill.

On a freehold 792sq m block of land, the property is occupied by a local panelbeating company and auto services company which Magill describes as "an established tenant providing a good cashflow".

The building was constructed in the 1960s and also contains a two-bedroom 130sq m unit and a 100sq m fashion retail outlet.

"The owners are divesting of their portfolio and as a result there is a rare opportunity here for either passive investors to buy a substantial land holding providing a good return in the evolving Newmarket retail precinct, or for more active investors or developers to add value to the property and take advantage of an imminent zoning change.

"The property backs on to Zarbo and Morrow Sts, with Teed St next door housing many of Auckland's leading fashion retailers. Shoppers will find brands such as Zambezi, Storm, Kate Sylvester, Moochi and Ruby here," says Holmes.

Also up for auction on March 17 are:

* A property at 375 Manukau Rd, Epsom, comprising a Hollywood Bakery on a lengthy lease providing an annual rent of $82,738 plus GST on 10 plus 10-year lease term which began in August 2009.

* A 2285sq m land area with Business 5 zoning and a Project Information Memorandum (PIM) issued for a childcare centre at 12 Pavilion Drive, Airport Oaks.

* A building at 53-55 Paul Mathews Drive, North Harbour, with strong multinational tenant covenant, recently refurbished inside and out, in the heart of the North Harbour industrial estate and returning $215,000 net per annum on an 8-year lease.