Property for auction leased by Japanese restaurant

The property for auction is tenanted by the Japanese restaurant Daikoku. Photo / Supplied

A substantial Albany restaurant property occupied by Japanese culinary business Daikoku will go under the hammer in mid-May at Bayleys' next Total Property portfolio auction in Auckland.

The restaurant occupies a 225sq m unit in The Foundation retail complex, located at 270 Oteha Valley Rd, on a 10-year lease which is generating net annual income of $97,520.

It will be among a range of commercial and industrial properties being put up for auction on Wednesday May 16, 2019, unless sold prior and is being marketed by Eddie Zhong of Bayleys North Shore Commercial and Matt Lee of Bayleys' central Auckland office.

Daikoku was among a wide variety of tenants to commit to long-term leases when The Foundation development was completed in 2014. Its current 10-year term runs until July 2024 with two five-year rights of renewal. Income growth is provided by a mix of Consumer Price Index rental increases and market rent reviews.

"Daikoku is a popular Japanese restaurant and a feature of its Albany premises is an elevated, covered outdoor terrace area of approximately 50sq m which adds to the unique dining experience provided for its customers," says Eddie Zhong.

"Major Daikoku drawcards are the teppanyaki chefs who cook meals in front of diners and their Albany restaurant incorporates 11 purpose-built tables which enable this to be done - seating eight to nine people."

Established in 1989, Daikoku now has six restaurants in Auckland and one in Hamilton with others also located in Fiji, Papua New Guinea and the United States.

The Daikoku Albany restaurant is in a high-profile location near the entranceway to The Foundation and overlooking Oteha Valley Rd. This road is a main arterial which runs between the Albany Highway and the Northern Motorway and also connects with Appian Way, a main link road to Westfield's Albany shopping mall and North Harbour Stadium.

Developed jointly by Todd Property and Capella Property, The Foundation is located on a large site on the corner with Apian Way and encompasses 23-unit titled properties.

"The tenant mix was carefully selected, to provide a complementary range of high-quality, modern retail convenience offerings," says Matt Lee who has sold a large number of units in The Foundation. "It has an excellent range of restaurants and convenience food and beverage businesses, as well as service retailers and a childcare facility."

Neighbouring businesses include La Porchetta restaurant, Pita Pit, Tank Juice, Lone Star and Snap Fitness, with a variety of bulk retailers located in a large development on the opposite side of Apian Way including Mitre 10 Mega and Freedom Furniture.

Eddie Zhong says Albany has been at the epicentre of much of the North Shore's commercial, industrial and residential growth over the past two decades. The area has seen a variety of retail developments completed in recent years, however most of the new space that has been created has now been soaked up.

"With numerous apartment and terrace house developments underway, thousands of high-density households are expected to be added to Albany's growing population in the coming years. This will create increasing demand for the type of food and beverage offerings and other services that The Foundation provides which should benefit all of its occupants."