Five tenanted units in a new convenience centre at 16 Wainui Rd, Silverdale.
Five tenanted units in a new convenience centre at 16 Wainui Rd, Silverdale.
Five tenanted retail units in a new convenience shopping centre at 16 Wainui Rd, in the commercial heart of Silverdale, north of Auckland, are for sale by auction.
The unit-titled investment properties are being marketed by Charlie Oscroft, Andrew Reed and Deborah Dowling of Colliers International on behalf of developerFinstar. They will go under the hammer individually at 11am on April 10, at 151 Queen St, Auckland, unless they are sold prior.
The units all have new lease terms of between six and 10 years, with further rights of renewal and rent reviews. They are occupied by Westpac, Burger Fuel, Coffee Club, Mad Butcher and Wild Grain Bakery.
The centre was completed in October and houses 10 retail tenancies anchored by two banks. Dowling says it benefits from a highly visible position directly opposite the large Silverdale Centre, which opened last October with 36 shops anchored by The Warehouse and Countdown.
"With the growth of Silverdale as a hub for the fast-developing surrounding large residential area, the retailers in this centre are well-placed to benefit from a position in what looks certain to become a thriving local retail precinct," says Dowling.
Oscroft says that with the annual net rentals on the units ranging from $40,500 to $99,370, the properties sit within a popular price bracket for individual investors.
"Retail properties have remained popular with investors even during the market downturn, owing to their easily understood fundamentals, and the market is now showing solid improvement especially in prime locations. With the low borrowing rates that are available, we are seeing many first-time buyers enter the commercial property investment market."
John Bowring, Colliers International's national auction manager, says that with all the tenants on long-term leases with guaranteed growth, the units present sound investments.
"For the first-time investor in commercial property, these units tick all the boxes and constitute easy to manage, hassle-free investments," he says. "They would be ideal for people seeking to diversify into commercial property with income-generating holdings which require a minimal capital outlay."
The centre, designed by Avery Architects and built by Aspec, features three single-level buildings constructed to the new building standard earthquake code, and surrounding 70 carparks. Other tenants are ASB, Nandos, Green Bay Fruit & Vegetables and a liquor store.
An appropriate mix of tenants was a priority for the developers, Reed says. "Finstar has developed many retail centres and know what sort of mix works. They have therefore considered the combination of retailers and services the community will require.
"The retail centre serves a fast-growing residential catchment and, given the significant population growth which is forecast for nearby suburbs, the new centre looks set to capture good customer numbers into the future," says Reed.
He says the centre was quickly occupied following its completion, which shows the area and its growing population are attractive to convenience retailers.
