New portfolio features suburban shops

View of four shops for sale at 204 Richardson Rd, Mt Roskill identified by a red border.

A corner block of four suburban shops in Mt Roskill and two retail properties with frontages to Great North Road in central Henderson are among over 30 commercial and industrial properties in Bayleys' Greater Auckland portfolio which will go up for auction on March 4.

The Mount Roskill offering at 204 Richardson Rd is on a prime 840 sq m corner site and comprises a 505 sq m single level building with four shops, an ASB ATM, and a telecommunications lease to Vodafone.

"This property has become available to the market for the first time in 20 years," says James Chan of Bayleys Auckland who is marketing it with colleague Matt Lee.

"It comprises an excellent freehold standalone investment opportunity with the added advantage of multiple income streams," says Chan. "It's a very high profile property at the busy intersection of Richardson Rd and Stoddard Rd in the Owairaka Shopping Centre, a 24 shop complex that services the surrounding high density residential suburbs of Mt Roskill, Mt Albert, Blockhouse Bay and Avondale. It is a particularly popular destination for the nearby Indian and Middle Eastern communities and enjoys a high volume of pedestrian and vehicle traffic."

The property is currently producing net annual rental income of $120,625 but Chan says there is an opportunity for a new owner to increase this significantly by leasing up 131 sq m of vacant space following the recent relocation of the previous occupant.

This corner bulk retail outlet at 424 Great North Road is leased to Bedscene Limited.

"This is the highest profile shop as it is located in the prime corner position with floor to ceiling glazing designed to maximise exposure to passing traffic. It is currently the only vacant shop in the Owairaka Shopping Centre."

The anchor tenant of the property for sale, occupying 205sq m of space, is Mohammed's Halal Meats which has a four year lease from 2012, with three four-year rights of renewal. It sells a variety of Halal meat products and groceries and also operates a fried chicken takeaway from the premises.

"It's a well established business that also has a sizeable factory in Avondale, used for processing, packaging and storing premium Halal meat products that are supplied to various hotels, outlets and companies across New Zealand and overseas," says Lee.
The other two tenants are the Amaano shop, which specialises in selling a variety of Middle Eastern and African food products, books, cosmestics and clothing, and the Bargain Box.

The property has loading areas and shared carp arking at the rear of the premises, accessed off Stoddard Road, and a bus stop in positioned directly in front of the property on Stoddard Road.

The larger of the two Henderson properties is an 940 sq m standalone bulk retail outlet located on a 854 sq freehold corner site at 424 Great North Road which is being marketed by Quinn Ngo and Owen Ding of Bayleys Auckland in conjunction with James Chan.

A retail outlet at 344 Great North Road, has been leased by the TAB since 1999.

The property, which is currently producing net annual rental income of $124,064, is leased to Bedscene Limited, trading as Waitemata Backcare Beds. Established in 1991 as a bed and bedroom furniture specialist it also has stores in the Wairau Valley, Botany and Mt Wellington. Its current six year lease runs until November 2019, with a right of renewal through until June 2023.

"This property is in a prime spot in the heart of Henderson, at the high exposure intersection of Great North Road and Henderson Valley Road which means it's a great location for almost any business as well as offering redevelopment potential longer term because of its pivotal positon," says Ngo.

The building has a ground floor area of about 655 sq m and a 285 sq m mezzanine level with a storage room and loading area at the rear of the property. It also has an abundance of on site car parking in addition to main road and side street parking.

Situated nearby on Great North Road is a longstanding 158 sq m TAB premises which has been tenanted by the New Zealand Racing Board (NZRB) since 1999.

Located at 344 Great North Road, among a busy strip retail block of shops, the property is currently producing net annual rental income of $60,000 p.a. plus GST on NZRB's current six year lease from 2011. Established in 1951, the TAB has approximately 148,000 account holders and close to 650 outlets across New Zealand.

Lee who is marketing the unit with Chan, says this branch benefits from a site-specific Government licence which grants the use of nine gaming slot machines which generate additional customers and revenue.

This single storey building was constructed in the 1960s, with a new Maxispan Zincalume roof installed in September 2011. There are two car parks at rear of the premises, accessed by a right of way, plus street parking directly in front of the building.

"The property is in a strong location on a busy main arterial which has a high level of pedestrian and vehicle traffic," says Lee. "Public transport facilities are also nearby, with a short walk to the bus stop or the Henderson Train Station."