A pair of suburban retail premises in high-profile locations, with pizza outlets as their tenants, has been placed on the market.
The two South Auckland properties, featured in Bayleys' latest Total Property portfolio magazine, are occupied by two of the big names in New Zealand's pizza scene – Pizza Hutt and Sal's – and are being sold independently of each other.
The first property is a block of shops at 126 Bairds Rd in Otara – with Pizza Hutt as the middle tenancy, flanked by a vacant tenancy that used to house a beauty parlour and a chemist shop.
The single-level block is being marketed for sale through Bayleys Manukau and brokers Tony Chaudhary, Amy Weng, and Scott Kirk with tenders closing at noon on Thursday August 8.
The 620sq m building sits on 784sq m of freehold land zoned Business Light Industrial under the Auckland Plan.
It has two commercial tenancies:
Pizza Hutt is on a lease running through to 2023 with three further five-year right of renewal, paying rent of $40,000 plus GST per annum; and
South Seas Community Pharmacy is on a lease running through to 2025 with two further six-year right of renewal, paying rent of $85,000 plus GST per annum.
A third retail premises in the block previously housed a beauty parlour but is vacant. The owner of the property is, however, in discussions with a potential new tenant, and is prepared to under-write a four-year lease at $45,000 per annum plus GST as part of the sale offering.
Other neighbouring retail sites in the immediate vicinity included Dollar Dealers, Eazy Finance and the Roast Shop.
The second pizza-related property for sale houses a 144sq m Sal's pizza outlet built in the early 2000s as part of an elongated-shaped retail hub facing onto one of South Auckland's busiest main arterial routes.
The property is being marketed through salespeople James Chan and Oscar Kuang for sale by auction at 11am on Wednesday August 7 through Bayleys Auckland.
Sal's is on a lease running through to 2025 with one further 10-year right of renewal and generates rent of $58,762 plus GST per annum; rising to $60,818 next month. Annual rent increases of 3.5 per cent are built into the lease.
The strata-titled Sals' property at Unit 2B 597 Great South Rd is part of a tilt-slab style block of retail premises - with neighbouring business operations including Ray White Real Estate, a mobile phone and stereo shop, butchery, fruit and vegetable market, bakery, pharmacy, laundromat, and healthcare practice. The Great South Rd block is zoned Light Industrial under the Auckland Council Plan.
The Sal's property has shared access to 48 parking spaces immediately outside its front door, with staff and product delivery access along a small service lane running down the rear of the building. The block in which Sal's is located has a new build standards (NBS) rating of 100 per cent.