A prime corner retail property in the heart of Orewa township is for sale fully leased to ANZ Bank and NZ Post/Kiwibank which have been in occupation for 23 years.
The 648 sq m building was purpose built by NZ Post in the mid 1990s for its own use with half of the premises leased to what was then National Bank but which has subsequently become part of ANZ Bank.
It is located on a 586 sq m site at 2 Hillary Square with frontage also to the Hibiscus Coast Highway and Florence Avenue.
Mustan Bagasra, of Bayleys Orewa office, and Nicolas Ching and James Chan, of Bayleys’ Auckland-based international division, have been appointed to sell the property, now owned by a private investor.
It is among a wide range of commercial properties going under the hammer on December 5 (unless sold prior) in Bayleys’ final Total Property portfolio auction for the year.
“The property comprises a high-stud, single level building, plus a mezzanine area within the ANZ Bank premises,” says Ching. “It has been constructed to a high standard, with precast concrete tilt slab walls, which is reflected in its A+ seismic assessment of over 100 per cent of New Building Standard.
“It is also extremely well presented with both tenants having made significant investments in high quality interior fitouts to give them a strong brand profile.”
Bagasra says the offering is one of the most highly regarded commercial properties in Orewa.
“Properties of this calibre rarely come up for sale in the tightly held and popular seaside suburb of Orewa, especially ones occupied by longstanding big brand tenants and in such a strong location as this.
“The property is within the main CBD precinct and has huge visibility to the Hibiscus Coast Highway, the major arterial route through the town which is also the closest road to Orewa beach. There is a pedestrian crossing across Hibiscus Coast Highway right outside the main entrance to the ANZ premises.
“The corner site also faces Florence Ave, another busy road which runs through the CBD, and Hillary Square, best known for its landmark statue of Sir Edmund Hillary, which attracts a high level of foot traffic,” says Bagasra.
“The council has always immaculately maintained this part of the town centre which is also home to a number of other banks and high profile national retail tenants, including a New World supermarket, plus a medical centre, food and beverage outlets, professional service businesses, community organisations and government agencies.”
The property is currently generating gross annual rental income of $262,316. ANZ renewed its lease for a further three years in July 2017 and has two further three-year rights of renewal which if exercised would take the final expiry of its current lease through until mid 2026.
NZ Post is on its final three-year right of renewal which runs until April 2021.
“Obviously the next owner could investigate negotiating a new lease with NZ Post or alternatively they may prefer to look at other tenancy options given the property’s sought after location,” says Chan. “Or the premises could appeal to an owner occupier wanting to secure a prime town centre spot and prepared to wait until the end of either tenant’s lease to relocate.”
The property is also likely to have longer term development potential, says Bagasra. He says huge growth has taken place within the last few years in Orewa, the nearby new townships of Millwater and Silverdale and the wider Hibiscus Coast and Whangaparoa Peninsula. This is expected to continue for many years to come because of an abundance of greenfields land close to the northern motorway and Unitary Plan zonings which allow for more intensive development.
“The phenomenal level of growth is creating demand for new commercial properties and 2 Hilary Square’s flexible Town Centre zoning and its strategic location means it offers a potentially lucrative development opportunity in the future.”
The zoning provides for a wide range of activities with increased height allowances designed to facilitate greater office and residential living opportunities on upper floors. “The property’s positon in the heart of the town centre and across the road from one of Auckland’s nicest beaches means it could lend itself to a mixed use commercial and residential redevelopment at some stage which makes greater use of the site,” Bagasra says.