Eight tenanted freehold titles, leased by 12 retailers paying over $4.1 million in total annual rent, are for sale as a package or individually in the Westgate Shopping Centre 17km northwest of Auckland City.
"The portfolio's size and scope present prospective buyers with a variety of choices," says Peter Herdson, national director of capital markets for Colliers International, with colleagues Blair Peterken, Jason Seymour and Craig Smith exclusively appointed to market the properties on behalf of New Zealand Retail Property Group (NZRPG).
They are seeking offers for the properties either individually, or combined, by way of deadline private treaty, closing at 4pm on Wednesday June 19, unless they sell earlier.
"The strong line-up of well-known brands leasing the stores includes, The Warehouse, Torpedo7, Crackerjack, Chemist Warehouse, Event Cinemas, Texas Chicken, F45 Training and Robert Harris," Herdson says.
"Bolstering these national tenants is prominent local retailer Westgate Bowling, along with Physio Connect, which has a number of stores across the North Shore and West Auckland.
"Whether purchasers are seeking one investment property, or looking to acquire a few to add to a portfolio, there are options to suit, with annual investment returns from the individual properties ranging from $109,768 to $1,403,937 net per annum."
The eight freehold properties and 12 tenants' investment details are:
• Shop F - A 7848.69sq m large format retail tenancy on a 1.107ha site, occupied by The Warehouse on a 10-year lease earning $1,403,937.80 net per annum, together with two smaller tenancies (under construction) totalling 207sq m with a return on completion of $117,850 per annum.
• Shops H7 and H9 - A dual-tenancy retail property with a net lettable area of 3662.64sq m on a 9149sq m site. Shop H7 is a 2561.1sq m unit occupied by Torpedo7 on a seven-year lease earning $592,961 net per annum. Shop H9 is a 1101.54sq m unit occupied by Crackerjack paying $261,208.91 net per annum on an eight-year lease.
• Shop H3 - A 939.94sq m tenancy on a 1629sq m site occupied by Chemist Warehouse on an eight-year lease generating $228,554.00 net per annum.
• Shop L8 - A 4161.43sq m cinema complex on a 4875sq m site occupied by Event Cinemas on a 20-year lease earning $768,088.27 net per annum commencing November 2019.
• Shop L4 - A 1177.08sq m bowling and minigolf facility on a 1509sq m site occupied by Westgate Bowling on 10-year lease returning $306,040.80 net per annum.
• Shop C9 - A 348.75sq m food and beverage tenancy on a 909sq m site occupied by Texas Chicken on a 12-year lease earning $165,000 net per annum.
• Shop C22 - A 138.66sq m cafe tenancy on a 1067sq m site occupied by Robert Harris paying $109,768.63 net per annum on a 13-year lease.
• Shop W, 5A and 5C - A dual-tenancy retail property with a net lettable area of 431.67sq m on a 500sq m site. Unit 5A is a 290.94sq m circuit training gym occupied by F45 Training on a six-year lease earning $109,102 net per annum. Unit 5C is a 140.73sq m medical tenancy occupied by Physio Connect on a six-year lease returning $59,810.25 net per annum.
Peterken says each of the eight properties provides an outstanding opportunity in its own right but having the chance to purchase all eight at once adds extra impetus to the offer.
"There has been an influx in high-net-worth investors, syndicators, listed and unlisted property funds from here and abroad eyeing up Auckland opportunities, but in some cases they have been held back by the calibre and lack of scale of properties on offer.
"Having the ability to purchase high-quality, freehold retail properties with strong covenants – offering a total floor area of 18,915.86sq m, total income of $4,122,321 net per annum, a total weighted average lease term of 9.09 years plus fixed rental growth already in place – is clearly a standout opportunity.
"It is also worth noting that listed property companies have given the retail catchment and its future growth potential a big tick of approval, with Stride Property Limited and Kiwi Property Group investing significantly in Westgate over the past few years," Peterken says.
Herdson says NZRPG has meticulously master planned the Westgate centre over the past few decades. "Since opening in 1997, Westgate Shopping Centre has been a hub for shopping, dining and entertainment with over 80 tenancies.
"Situated near the interchange between the State Highway 16 Northwestern Motorway and the Upper Harbour Highway, with access from Fred Taylor Drive, Fernhill Drive and Westgate Drive, this centre has become a major shopping, work and play destination.
"These properties come to the market when comparable opportunities are virtually non-existent for securing a strong mix of tenants on long-term leases with fixed rent growth within a Metropolitan Town Centre zoning," says Herdson,
"This long-established shopping centre is strategically positioned in one of the most important population and employment growth nodes in Auckland, located only 20 minutes from Auckland CBD and 15 minutes from Albany.
"The flexibility of the owner's desired outcome, the range in retail property sizes and attractiveness of the properties' incomes, lead us to believe there will be strong interest from a variety of purchasers across New Zealand."
Smith says the centre has benefited significantly from total public and private sector investment in the area which is estimated at nearly $1 billion.
"The location, with access right on the Western Ring Route, means it is well served by motorway connections from north, west and south - giving visiting customers hassle-free access to the centre's 1350 outdoor carparks.
"Purchasers can also take comfort in demographic forecasts for the wider Westgate area. Auckland's population is predicted to grow by 1 million over the next 30 years and large tracts of that growth will be based in the northwest.
"Major residential developments are planned or are underway in nearby Whenuapai, Red Hills, Westgate, Hobsonville Point, Kumeu and Huapai."
Smith says Westgate is projected in the Auckland Plan 2050, released mid-last year by Auckland Council, to have a population growth of 81,760 people, 33,190 households and 20,260 new jobs by 2048.