A retail unit situated within historic Landmark House on the corner of Queen Street and Durham Lane West will go under the hammer early next month.
"This is an outstanding Queen Street retail investment property," says John Stringer of Barfoot & Thompson Commercial who, with colleague Kim Loo, is marketing Unit BA at 187 Queen St for sale by auction at 10 am on Thursday March 10 at the agency's Shortland Street auction room.
"Located in the heart of the CBD, the unit has a new 10 year lease in place too."
Fruit Life operating as a new Hong Kong Style Dessert franchisee," Stringer says. "With a final expiry of June 30, 2025, the lease earns about $75,000 per annum plus GST and outgoings at an average net rental rate $228.58 per square metre. In addition, there is built in four per cent rental growth every two years.
"This sale therefore represents a rare opportunity to secure an affordable retail property on the western side of Queen Street with a long lease and rental growth in place," Stringer says.
Loo says the retail property comprises a stratum estate in freehold rentable area of 328.12 sq m in the basement of Landmark House. Including passage and corridors, storage area and a shared toilet, the total unit area is about 454 sq m.
"The entrance to the premises is off Durham Street West, only 20 meters from Queen St," Loo says.
Landmark House is one of Auckland's most distinctive buildings having been completed in 1930 as the headquarters for the Auckland Electric Power Board.
Under the Auckland Council's district plan, the building is zoned SMA Area 1 - City Centre which is designed to maintain the highest intensity of commercial activity.
Loo says the unit has been completely renovated by the tenant and fitted out to a good standard. "Refurbishments include new suspended ceiling, lighting and floor coverings that have created a light, bright and clean dining space. A front desk counter is at the entrance and there is a separate kitchen. The premises are largely open plan and provide a versatile space suitable for a variety of retail and food uses."
Loo says the tenant, Hong Kong Style Dessert, serves a wide range of authentic, delicious and healthier dessert dishes in an environment that is warm and welcoming.
"The lessee operates under an international franchise licence with a global brand that has over 600 stores in the United States, Australia, Singapore, Hong Kong, Macau, China, Malaysia, Thailand and now New Zealand."