Five freehold strata units in a fully leased retail convenience centre in central Howick are to be auctioned individually early next month.
Built 10 years ago, the complex comprises two one-storey buildings with a total of 10 tenants located on just over half a ha of land at 219 Moore St on the fringe of the central Howick retail area.
“This is an attractive opportunity to invest in a well maintained, modern retail complex,” says Millie Liang of Bayleys Auckland, who is marketing the units in conjunction with Tony Chaudhary of South Auckland.
“One of the major attractions which makes this a bit different from most retail unit offerings is the fact that a purchaser’s investment risk is split across two tenancies in each unit. The tenancies have different lease terms and expiry dates which provides more flexibility and security than a unit with just the one tenant.”
The units, range in size from 318 sqm to 615 sqm and are generating net annual rental income ranging from $77,589 to $158,158.
Liang says some of the rents are under market, providing potential for future rental growth.
The units are among over 30 offerings featured in Bayleys’ latest total property portfolio, which will be auctioned in Bayleys’ central Auckland auction rooms on December 2, unless sold prior.
The units at 219 Moore St comprise the following.
Unit A spans 318 sqm and returns net annual rental income of $77,589. It is occupied by a Bin Inn store, which has just exercised a four-year right of renewal, and HHH Advertising Media, which has a four-year lease, with two three-year rights of renewal.
Unit B spans 615 sqm and generates net annual rental income of $158,158. It is tenanted by Howick Fruit Market trading as Fruit World, which has been in occupation since 2011 on a six-year lease with two six-year rights of renewal and New Howick Pizza on a three-year lease. Fruit World was established in 2001 and has 29 stores in the northern North Island specialising in sourcing and selling fresh fruit and vegetables. New Howick Pizza has an extensive pizza menu and offers online ordering and delivery to surrounding residential areas.
Unit C spans 442 sqm and generates net annual rental income of $101,892. A new Chinese restaurant is about to open its doors on a new five-year lease with two five-year rights of renewal. Kip McGrath is also on a five-year lease, with two three-year rights of renewal.
Unit D spans 327 sqm returning net annual rental income of $80,200. It is occupied by pet food retailer Raw Essentials and a St John opportunity shop on differing three-year leases with rights of renewal. Raw Essentials specialises in natural, unprocessed food products for dogs and cats and has eight stores in Auckland and Hamilton. St John has close to 30 community opportunity shops around the country which sell donated goods to help raise funds for the organisation. It has entered into a new three-year lease on its Howick store from November 2015.
Unit E spans 322 sqm generating net annual rental income of $73,156. The Miuwa Cafe has a high quality fit out and a three-year lease, with two three-year rights of renewal. The neighbouring 2 Dollar Shop has been there since 2012 on a six-year lease and has one six-year right of renewal.
Units A and B are located in one building with C, D and E in the other. They have been constructed of reinforced concrete slabs and columns and steel beams. The external walls comprise a combination of precast concrete panels, aluminium sheeting and glass facades.
All the shops have reinforced concrete roofing with a waterproofed membrane and suspended ceilings with recessed fluorescent lighting.
“The units have been well positioned around a total of approximately 82 common car parks, which means there is plenty of customer parking for all of the tenancies including parks right outside their front doors,” says Liang.
Chaudhary says the 5,473 sqm site also has over 70 metres of road frontage which provides good exposure for tenants to high volumes of traffic travelling along Moore St, a busy road leading into the centre of Howick.
The property is located in the business five area of central Howick, with the surrounding area having a mix of service retail and light industrial premises.
Chaudhary says a New World supermarket which has recently been opened adjacent to the property should significantly enhance the profile of the centre and increase the amount of foot and vehicular traffic.
“The opening of the nearby supermarket should also increase the units’ appeal to complementary national retailers which often like to position themselves close to supermarkets because of the volume of people they attract,” says Chaudhary.
He adds the Moore St retail centre draws its customers from an expanding and increasingly wealthy residential catchment area which includes Howick, Cockle Bay, Botany Downs, Dannemora, Golflands and Pakuranga.
