Two retail investment opportunities, with appeal to smaller investors and family trusts, will go under the hammer early next month.
They are among 13 commercial and industrial properties which will be put up for sale in Bayleys' last Total Property portfolio auction of the year on Wednesday, December 4, unless sold prior.
The larger of the two offerings is a 315 sq m unit, currently split into two tenancies in a retail complex at 2 Triangle Road, Massey in West Auckland.
Its long standing occupants are Domino's Pizza, whose current 10-year lease commenced in 2011, and Triangle Laundromat which last year exercised the first of three three-year rights of renewal.
The property which is currently generating net annual rental income of $91,050 plus GST is being marketed by Oscar Kuang and James Chan of Bayleys International division
Kuang says the property is located in a high profile corner positon, with excellent signage exposure, in a modern suburban convenience centre, with good parking at the front and rear of the unit. The centre is opposite a busy roundabout intersection which connects Triangle Rd with another major arterial, Don Buck Rd, that links Massey with nearby Westgate and its new town centre.
"The unit is next to a Challenge Service station so benefits from high visibility and accessibility to large volumes of passing vehicles on their way to and from filling up,'' says Kuang.
Other substantial tenants in the centre include the Westside Bakehouse, Massey Fruit & Vege, a Junction Juniors early childhood education centre, located at the rear of the complex, and an auto services business.
James Chan says the property is well positioned close to the major commercial and residential development that is occurring in Westgate/Massey. "Westgate has been identified in the Auckland Plan as a major new metropolitan centre which is needed to cope with city's population growth, with over $1 billion being invested in the area over a 10-year time span. Massey will benefit significantly from the spin off from Westgate's massive growth."
Another retail unit also scheduled to go to auction on December 4 (unless sold prior) is a 91 sq m shop at the main entrance to the Royal Oak Mall at 691 Manukau Rd which has been occupied by a Rodney Wayne hair salon for the past 22 years.
The property is generating net annual rental income of $40,325 plus GST making it an affordable passive investment which is likely to sell for under $1 million, says Bayleys International's Matt Lee who is marketing the property with James Chan.
The current lease runs until March 2022, with a further six-year right of renewal which if exercised would take its final expiry through until 2028.
Lee says the next owner will benefit from fixed annual rental increases of two per cent with a rental review to market should the lease be renewed in 2022.
"The premises enjoys excellent exposure from its prime position at the main entrance to the centre of the mall with dual access from both the interior and exterior of the shopping centre, allowing entry outside of the mall's normal shopping hours. It also has significant signage exposure."
Established in 1980, Rodney Wayne now has 18 salons across Auckland and 33 throughout New Zealand. The Royal Oak salon also incorporates a Shampoo 'n' Things shop, another well-established business within the Rodney Wayne Group specialising in the sale of hair products and accessories.
Lee says Rodney Wayne is widely recognised as the leading hair salon and hairdressing brand in New Zealand and is its most awarded, including winning Hairstylist of the Year at the Fashion Hair Awards 2018.
Rodney Wayne is the sole hair dressing salon in the Royal Oak Mall and is surrounded by 65 different businesses including Pak 'n Save, ANZ Bank, McDonald's, Subway, Bakers Delight, Wendy's,
Unichem Pharmacy and a Jetts gymnasium. There are also close to 778 car parks at the longstanding centre located on a 2.15ha site near the Royal Oak roundabout where five of Auckland's major suburban roads meet.
James Chan says the mall services a large residential area, including nearby affluent suburbs such as Epsom, One Tree Hill, Greenlane and Onehunga as well as Royal Oak.
"It's also close to Fletcher Building's Three Kings ex-quarry, residential development site, a $1.2 billion housing project planning to build up to 1,500 new homes which is likely to provide a further boost to the mall's customer base."