Mega store site one of the largest under hammer

The site of the Mitre 10 MEGA store on Lincoln Rd, Henderson. Photo / Supplied

One of the largest commercial and industrial investment properties to ever be put up for auction will go under the hammer later this month.

The 14,187sq m Mitre 10 MEGA store in Henderson, West Auckland was the largest bulk retail outlet of its kind in Australasia when it was completed in 2004 and still ranks well up the scale because of its floor space.

Mitre 10 (New Zealand) has a 10-year head lease on the property from April 2009 that is producing net annual rental income of $1.8 million.

The property is being auctioned by Bayleys on September 23 at the company's central Auckland offices and is being marketed by Darryl Devereux and Brian Caldwell, of Bayleys North Shore. in conjunction with Scot Kirk, Bayleys Auckland.

Devereux says a sales contract on the property had fallen over because the prospective investor could not secure the funding which prompted the vendor to put it up for auction.

"There is still very strong investor demand for well located buildings like this with a long-term lease to a major national company. This was what prompted the decision to go to auction even though it is considerably larger than most of our auction offerings."

He says there are a number of investors in the market with $3 million to $4 million dollars to invest, who may consider joining forces with a small syndicate of other investors to purchase such a quality property. There are also high net worth individuals and private companies looking for opportunities in the current market.

The store sits on the southern end of a 2.76ha site with extensive customer carparking for 261 vehicles on the northern side. It comes with 8667sq m of general retail space, a 2467sq m garden centre, offices and amenities, a 1036sq m timber yard and a cafe.

The high profile site is located at 186 Lincoln Rd, one of West Auckland's major arterial routes, which has a daily traffic count of about 47,250 vehicles. It provides the major transport link between the North Western motorway and Henderson, the commercial heart of Waitakere city.

"The Mitre 10 property adjoins one of the country's biggest Pak'nSave stores and a Shell petrol station," Devereux says.

The property is owned by family interests of Auckland businessman Vinod Kumar, whose company Magsons Hardware subleases the site from Mitre 10 (NZ). Kumar's company also owns two other Mitre 10 businesses located in Botany and Westgate.

"The vendor is committed to selling but will retain the business operations of the Henderson outlet in line with their obligations to the Mitre10 (NZ) Limited head-lease," Devereux says.