The main retail building with the boutique shopping complex at 65-71 Edinburgh St.
A big central Pukekohe site encompassing a boutique shopping complex and the Saloon Saloon bar and restaurant on a separate title is among over 40 properties featured for sale in Bayleys' first Greater Auckland commercial and industrial portfolio for 2015.
Located on a 7028 sq m high profile corner site in two titles at the intersection of Edinburgh Street and Stadium Drive, the property comprises three buildings containing 12 tenancies producing total net annual rental income of $453,450 plus GST.
The complex at 65-71 Edinburgh St, Pukekohe, is being offered for sale by tender by Matt Lee and James Chan of Bayleys Auckland office in conjunction with Shane Snjider of Bayleys Pukekohe. Tenders close on March 5 unless the property is sold earlier by private treaty.
"This should appeal to an investor or a developer looking for an add value opportunity in a growth location," says Chan. "In the short term, there is potential to significantly increase the property's income by leasing up two retail units that are currently vacant as well as securing a more market related rent on the largest retail outlet which is occupied on a monthly basis.
"Longer term, the property has substantial redevelopment potential given the site is underdeveloped and it is strategically located within the Pukekohe Town Centre zone in the proposed Auckland Unitary Plan."
One of the titles, comprising 6088 sq m of land, has 2392 sq m of commercial space spread over two separate buildings. The larger of the two buildings situated along the southern boundary was originally a supermarket and was subsequently reconfigured and upgraded to provide a multi-tenancy retail building with a total of eight commercial units.
Lee says a complementary mix of tenants include well known national brands Columbus Café and Noodle Canteen on 12 year leases from 2006 and TAB on a six-year lease from 2012.
Two of the units are leased to office tenants but could be converted to retail tenancies, Lee says. Another two units of 250 sq m and 125 sq m respectively are vacant. The largest unit in the building totalling 888 sq m was originally configured to accommodate a large format liquor store, Duffy & Finn's, that was opened by Foodstuffs in 2006. It is currently occupied on a monthly basis by PK Furniture but Lee says it is providing a holding income only and there is potential to significantly increase the rental return from this unit - possibly by reconfiguring the space into smaller tenancies and leasing it to multiple retailers.
The Saloon Saloon pub at 65 Edinburgh St, Pukekohe, is on a separate title.
Another more recently completed building constructed during 2007 on the north eastern corner of the site encompasses three retail units and is fully occupied by a large Coin Save store, a Nando's food outlet and a NZ Spacies outlet which hires and sells games machines. There are 74 car bays between the buildings offering plenty of parking for shoppers.
The third building on the property is located at 65 Edinburgh St on a separate 940 sq m title on the south west corner of the site alongside the main retail premises. It was originally built in the 1940s but upgraded and extended for use as a tavern and restaurant between 2010 and 2013. It comprises a two-level 458 sq m dwelling, including an 80 sq m covered timber deck extending off a restaurant and bar downstairs where the kitchen areas, which include a food preparation room and chiller room, are also located. A second open plan restaurant and bar are upstairs.
Saloon Saloon Limited has a 12-year lease from January 2012 with two further rights of renewal of six years each. Lee says the building has been fitted out to a good quality level, providing Western-themed character accommodation. A mechanical "bucking bull" is a central feature which attracts patrons keen to try their hand at rodeo riding. The pub also runs a popular quiz night on Wednesday evenings, features DJs and bands at weekends and has three different space options for private functions capable of catering for up to 150 people.
Chan says given that the pub is on a separate title which has its own access off Lodge Street, there would be an option for a new owner to sell this separately at some stage in the future to help fund redevelopment of the main site. The whole property is currently zoned Business, allowing for retailing, offices and food and beverage establishments.
Under the notified Proposed Auckland Unitary Plan (PAUP), the property will be part of the Town Centre Zone - Pukekohe. A total of 41 suburban centres around the region, typically located on main arterial roads which provide good public transport access, have a Town Centre zoning. Chan says it provides for a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services, with increased height levels designed to facilitate more office and residential living opportunities on upper floors. The proposed height control in the Pukekohe town centre has been set at 16.5 metres.
Snijder says the property is situated in a high exposure position, with Stadium Drive being part of a ring road system that extends around the perimeter of the Pukekohe CBD. The site is on a roundabout corner which also intersects with Tobin Street, part of the ring road as well, and Edinburgh Street, which is a main thoroughfare into Pukekohe from the north.
"The property benefits from being located next to popular businesses like McDonald´s, KFC, and a BP Petrol Station and is also close to busy King Street, Pukekohe's main retail street," says Snijder. "The combination of a growing population and a strong local rural-based economy has created increased demand for retail services in Pukekohe, and in recent years a wide range of national branded retailers have established themselves there."
Auckland Council says that the town will play an important role in the future of Auckland's southern most area, accommodating the largest proportion of the former Franklin District's continuing strong growth. A substantial block of greenfields land surrounding Pukekohe has been designated Future Urban under the unitary plan. This is transitional zone to help cater for Auckland's residential and commercial growth over the next 30 years which provides for land to be used for rural purposes until it is released for development.
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