A multi-tenanted commercial investment property with future residential development potential is one of 20 commercial and industrial properties which will go under the hammer on April 12 as part of Bayleys' latest Total Property portfolio auction.
Located at 100 Queens Rd, Panmure, the two-level building constructed around 1970 consists of a central shopping arcade with first floor commercial premises. There are 12 tenants occupying a net lettable area of about 1,400sq m on a 979sq m freehold site.
"Situated in prime location in the main retail and commercial street of Panmure, this investment offers split risk rental income growth in the short term with the long term potential for residential development under its unitary plan Town Centre Zoning," says Bayleys Auckland's Mark Pittaway, who is marketing the property.
"The zoning allows development up to a height of 15.5m, subject to planning rules and site survey, so there is potential to redevelop the land more intensively, with a multi-level residential building being the obvious end use.
Alternatively, it could be possible to convert the first floor to apartments or maybe add apartments on top of lower level commercial space, subject to obtaining the necessary council approvals"
The property has wide frontage onto Queens Rd and features a central arcade with tenancies on either side and a walk through to public car parking at the rear.
The 854sq m of ground floor space has 10 retail tenancies, with a laundromat, barber's shop and Panmure takeaways on Queens Rd and the balance of occupants inside the arcade.
The first floor, which has a gross rental area of 847sq m, has two tenancies comprising a boxing gym and an office tenant. "They are a variety of lease terms and expiries across the fully leased property," says Pittaway.
"The majority are local tenants that have been in occupation for a number of years, with most on three to six-year leases with rights of renewal."
The property is currently producing net annual rental income of approximately $121,000 plus GST and outgoings. Pittaway says this will increase significantly over the next two years as landlord incentives reduce.
Located on the banks of the Tamaki Estuary and Panmure Basin, Panmure provides a picturesque landscape for its ever increasing residential population, says Pittaway.
"Panmure has been identified as a very important cog in the future growth of Auckland as it's the gateway to southeast Auckland and to suburbs such as Pakuranga, Howick and Botany. It's also at the hub of significant residential growth and development in the surrounding areas of Tamaki, Glenn Innes, Ellerslie and Mt Wellington.
"It is as an integral part of the AMETI (Auckland-Manukau Eastern Transport Initiative) which is a major new Auckland Transport project to improve transport connections in south eastern Auckland. The first stage was the $18m upgrade of the Panmure Railway Station to increase the capacity of commuter trains into Auckland's CBD, approximately 17 minutes' travel time away.
"Panmure is also an integral part of the Tamaki Transformation Programme, a massive 25-year urban regeneration project which is receiving substantial central and local government investment.
"It is designed to improve the overall quality of life of Tamaki residents, with an expectation of doubling the population in this part of Auckland. With a focus on housing, health and economic development, it aims to make Panmure and the surrounding Tamaki area an exciting place to live and work in.
"Central Panmure is expected to undergo significant rejuvenation as part of the transformation programme, with a more intensive mix of commercial and residential development, and 100 Queens Road should benefit significantly."