A freehold investment property in South Auckland occupied by a fully licensed gaming bar and lounge has been placed on the market for sale.
The property, at Unit E, 1 The Concourse, in Mangere, offers potential buyers a solid revenue stream of more than $126,000 a year underpinned by 18 gaming machines and an established business.
Bayleys sales agent Nelson Raines says: “The property is located on the first floor of a two-storey building, within a busy retail hub in central Mangere and comes with dual access and generous parking.
“The tenant, Le Tausala Club, is the only licensed premises in central Mangere and has a strong customer base within the community.
“Opportunities to secure a freehold, town centre commercial investment with a strong return and solid rental growth in this area are rare.”
Mr Raines and fellow Bayleys sales agent Tony Chaudhry are marketing the property for sale by way of deadline private treaty closing at 4pm on Thursday, April 12, at 2 Harris Road, East Tamaki, Auckland, unless sold prior.
The property, which is zoned Business – Town Centre, offers 715sq m of floorspace above a retail strip within the Mangere Town Centre mall. Access is via two stairways, one from the interior of the retail hub and the other from the large public car park outside.
The property comprises an office suite with three separate office spaces and a reception area; men’s and women’s toilets and a shower; a main entertainment area with a large bar, which offers access to the kitchen, staff toilets and storage space.
It is leased until March 2021, with two five-year rights of renewal, and generates a net rental income of $126,880.20 a year plus GST. In-built rent reviews further increase cash-flow opportunities throughout the lease period.
Mr Chaudhary says: “Le Tausala Club is a community-focused entertainment venue that appeals to a wide age group. It is known for hosting a wide variety of theme nights and showcasing local musical acts.
“The club also operates 18 gaming machines – the maximum number allowed for a licensed premises – giving it an advantage over rival gaming establishments in the South Auckland area and providing a secure income stream.”
Unit E, 1 the Concourse is located on the north eastern side of Mangere Town Centre mall, off Bader Drive, which offers easy access to main arterial routes George Bolt Drive, which leads to the airport, and the South Western Motorway.
Mr Raines says: “Mangere Town Centre is a busy retail centre, offering a mixture of speciality and local shopping. Tenants within the mall include Countdown supermarket, McDonald's and New Zealand Post. Also in the area are Mangere Health Centre, Mangere Arts Centres, Pak'n'Save, KFC and Pizza Hut.”
Mangere is South Auckland’s third most populous ward, with local population of around 45,430 and growing, and the town centre has been identified as an area for future development.
The Business - Town Centre zoning provides for a wide range of activities, including commercial, leisure, residential, tourist, cultural, community and civic services, and provides a focus for commercial activities and growth.
Auckland Transport is committed to providing rail access to Mangere and the airport and it is envisaged that the future Airport Train Line will go through Mangere. This will increase the value of property within the town centre, and provide opportunities for further commercial development, Mr Raines says
“Developing commercial and residential space around transport hubs makes sense, both for developers and transport operators. A well-connected and fully integrated transport hub can lead to increased economic activity in the area surrounding it, which in turn helps to attracts new developments, occupiers, businesses and employment initiatives.
“For developers, the benefits are clear: transport hubs offer them urban land they can’t get elsewhere, and the activity around the transport hubs themselves supports new development, potentially transforming the commercial and residential property market over time. Buyers and tenants want to be near the hub, so footfall and demand are increased.”