A commercial convenience centre with a large footprint and development upside adjacent to the Papakura Train Station offers flexibility for forward-looking investors, Bayleys salespeople say.

The multi-tenanted premises on 4,694sqm (more or less) of freehold land is held in two titles at 46-50 Broadway, which forms a crucial link within the Papakura Town Centre’s prime business and retail strip.

Bayleys senior broker Piyush Kumar says market conditions mean that investors are applying a more discerning eye to purchases, particularly as banks re-examine debt servicing requirements, interest times cover, and Loan-to-Value Ratios (LVR).

“Investors are faced with strict lending criteria to meet main bank funding requirements, which has steered market interest towards multi-dimensional properties, particularly those generating an immediate return on investment and future development potential in high-growth areas.

“The subject property is an attractive investment option through this lens, given its substantial and immediate rental income, the opportunity for value appreciation and rental growth, and favourable development fundamentals, which include concept plans for a multi-unit mixed-use project.”

Kumar is marketing the property with Bayleys South Auckland colleagues Peter Migounoff and Tony Chaudhary for sale by deadline, closing at 4:00 pm on Tuesday, 23rd April 2024 (unless sold prior).

The property features a net lettable floor area of circa 2,720sqm (more or less), eight tenancies, and substantial car parking to the rear of the site.

It generates a combined annual income of circa $305,000 plus GST and is fully occupied by a diverse range of tenants including an Indian restaurant, real estate office, furniture warehouse, community centre, and financial services firm.

“Well positioned amongst national brand retailers, including Noel Leeming, Countdown supermarket, and No 1 Shoe Warehouse, the subject property forms part of an established commercial services destination and meets high demand from a growing residential catchment,” says Bayleys senior broker Peter Migounoff.

“Investors will identify the value in multiple tenancies, which provides a steady income stream and stability through consistent cash flow. Additionally, the variety of occupants further reduces potential for disruption, whilst increasing the scope for future rental growth.”

The property features detailed concept plans for 43 two-bedroom dwellings, some with garages and carports, and five commercial units.

“The plans show a staged residential development comprising six blocks, including five mixed-use units fronting Broadway with roadside retail and residential above. The plans include a good supply of car parking and landscaped communal space,” says Bayleys investment sales director Tony Chaudhary.

“A new purchaser may choose to implement these development plans or investigate their own development options to utilise the property to their unique best advantage.

“Favourable Business—Metropolitan Centre zoning features density provisions second only to city centres, allowing the location to thrive as a diverse commercial, residential, and civic services area.

“Given the high and immediate demand for housing, the development fundamentals are solid. There is excellent access to public transport, including the nearby Papakura Train Station and bus line. Additionally, being centrally located in the Papakura CBD provides ease of access to a multitude of retail amenity, supermarkets, services and a diverse range of dining and entertainment options.”

Click here for more information on the listing.