A new retail redevelopment at the centre of the transformation of Old Papatoetoe is up for sale.
Papatoetoe Mall is a multi-tenanted shopping centre on the main retail strip at 65 St George St.
It is centred on a new public plaza providing a key pedestrian link to the recently redeveloped New World supermarket. This, as well as the upgraded public car park to the rear, was officially opened on March 25 this year.
Both mall and plaza have been revitalised as part of a wider urban renewal programme, led by the city's regeneration agency Panuku Development Auckland.
Panuku has appointed Colliers International to market the mall and adjoining land at 53 St George St. The sale, via a tender process, is to close at 4pm on Wednesday May 29, unless sold earlier.
The 2548sq m property is anchored by a family-run medical centre and pharmacy, alongside local speciality shops and services.
Panuku development director Allan Young says the revitalised mall has an excellent mix of medical, health and retail-focused tenants.
"It's an exciting time for Old Papatoetoe — the newly redeveloped mall is the first of several upgrades across the town centre which, coupled with an upgraded New World, will really pump new life into the area."
Colliers' Matthew Barnes sees an opportunity to secure a split-risk investment in an area undergoing significant renewal.
"This is a key step towards realising Panuku's overall vision for Old Papatoetoe's town centre," he points out.
"It's part of the 2.5ha block of council land being redeveloped to provide amenities, housing, public spaces and better access to community services and facilities.
"The rejuvenated town centre will be an attractive place for people to live, shop, meet and enjoy themselves. As one of the town centre's first renewal projects, the mall will capitalise on this transformation."
The property comprises two newly refurbished retail buildings on either side of the public plaza. Three freehold titles offer 35m of frontage to St George St, providing ample street parking.
The buildings are split into 10 tenancies ranging in size from 32sq m to 285sq m. Nine of the tenancies are on new long-term leases while one unit is vacant. The property fully leased generates an annual market income of $423,000 plus GST in net annual rent.
Investment sales broker Chris Wakim says contemporary materials have been used in the refurbishment, including natural wood and colourful panels with motifs.
Shopfronts feature aluminium joinery and full-length glazing, providing strong visual flow between the buildings and the public plaza.
Meanwhile, an appealing streetscape combines new paving and public seating areas with native plantings and established trees.
Wakim says tenants largely offer neighbourhood services that will complement the supermarket. Retail offerings include sushi, a bakery, takeaway, cafe and fashion shop. Services include massages, nail and beauty and a barbershop.
The retail tenancies are underpinned by the medical tenancies, which account for 34 per cent of the annual market rent.
Strategic advisory director Chris Farhi says Old Papatoetoe has strong heritage character. It supports a growing and diverse community and has significant capacity to accommodate further growth.
"The regeneration of the town centre will act as a catalyst for this growth. Local household incomes are already growing faster than the surrounding catchment, while house prices have grown slightly faster than the region. The wider South Auckland area is also experiencing strong growth, with significant new development taking place in Papakura and Takanini," says Farhi.
"Old Papatoetoe offers excellent transport links to support this growth."