The land and building sustaining two ethnic fast food outlets in the middle of busy suburban shopping precinct have been placed on the market for sale.
The property at 188 Kitchener Road in the Auckland suburb of Milford sits directly opposite the Milford Shopping Centre with 65 shops and 757 car parks, which is next to the locale’s big New World supermarket.
Kitchener Road is Milford’s main retail trading street – housing scores of neighbourhood and community-focused shopping premises ranging from men’s’ and women’s’ barbers and hair salons, chemists, and real estate agencies, through to bakeries, drycleaners, and fashion clothing outlets.
The address is zoned business town centre under the Auckland Council Plan - which embraces suburban locations located on or near main arterial roads which provide good public transport access.
Kitchener Road links directly with the arterial route of Shakespeare Road which takes public transport commuters to the Smales Farm bus hub and private vehicle users to the Northcote Road onramps to State Highway One in both directions.
Located with some seven metres of high-profile street frontage on Milford’s main retail strip, the property at 188 Kitchener Road is leased by a mix of two tenants generating total passing rental income of $37,816 plus GST per annum. A substantial sealed area at the rear of the property is used for vehicle parking - with access of a service lane. On the other side of the service lane are residential dwellings.
The pair of ethnic eatery tenants within the Kitchener Road block include:
• Middle Eastern fast food outlet Kebab Serai occupying 51.1 square metres on a current lease running through to 2022 with one further two-year right of renewal, generating annual rental income of $18,942 plus GST
• Sushi eatery Tomo No Ura occupying 50.78-square metres on a current lease running through to the middle of this year with a further two-year right of renewal, paying annual rent of $18,874 plus GST.
The freehold property at 188 Kitchener Road comprising 315 square metres of land and a single-storey 101.89 square metre building is now being marketed for sale at auction on April 28 through Bayleys North Shore. Salespeople Daniel Henderson, Ranjan Unka and Michael Nees said that in the medium term, there was a clear opportunity to improve the property’s yield by increasing the existing rents as they came up for review.
“This is very much a ‘bite-sized’ investment opportunity for a purchaser looking to diversify their exposure in the property sector. That opportunity is very pertinent bearing in mind the Government’s recently announced investment regulation changes in the residential property sector,” Henderson said.
“The 188 Kitchener Road opportunity really does tick all the boxes – a sound building in a prominent location, in a prosperous suburb, with two established tenants in place who have a proven trading record in their activities. The site’s foot traffic also benefits from a pedestrian crossing virtually outside its front door.”
Auckland Council’s town centre zoning for 188 Kitchener Road allows for the construction of mixed-use buildings up to 21 metres tall. Last year, Milford Shopping Centre owner New Zealand Retail Property Group announced details of its residential apartment expansion above the existing mall amenity. To be known as Omana North, the apartment complex will wrap around the mall with 63 luxury one, two, and three-bedroom apartments.
“Milford’s neighbourhood retail environment based around Kitchener Road is very much focused on serving the day-to-day and weekly needs of the immediate population. And the town center activity is only going to increase when Omana North is developed and populated, along with in-fill housing activity we are seeing along the likes of nearby Shakespeare Road and Kitchener Road heading toward Takapuna,” Henderson said.