Two retail properties on Ponsonby Rd and Remuera Rd and a big development site in Kingsland comprise a portfolio of central Auckland properties which have been placed on the market by a family trust.
Bayleys Auckland City & Fringe senior broker Cameron Melhuish is managing the sale of the properties which are featured in Bayleys’ latest Total Property portfolio.
“The trust has made the decision to cash up its property holdings after many years of ownership,” he says.
The larger of the two retail offerings (pictured above) is at 285-291 Ponsonby Rd in the Three Lamps precinct. It comprises a two-level 488 sq m character building, constructed in 1911, and located on a 554 sq m freehold site zoned Business-Town Centre.
The fully leased property, generating net annual rental income of $233,000, is for sale by tender, closing 4pm, Wednesday, March 6. It is being marketed by Melhuish in conjunction with Damien Bullick and Jean-Paul Smit.
“This is a multi-tenanted investment offering in a tightly-held Ponsonby retail strip with a good spread of risk across four tenancies,” says Melhuish. “The current leases appear to have under market rental levels providing purchasers with an add value opportunity in a strong Ponsonby location.”
Each tenancy provides ground floor retail space plus rear amenities and storage as well as a first floor area. The occupants are the Salta Espresso café, whose lease encompasses a popular rear outdoor courtyard area, a shoe repair outlet, Chambers Linen & Gifts and Candy Nails.
The latter’s six-year lease expired mid 2018 and it is now on a month-to-month tenancy while the other three leases run until 2019 to 2025 with no rights of renewal.
“The varying lease expiries provide the flexibility to explore the future long-term potential of this property while enjoying a good cash flow in the medium term,” says Melhuish.
The property’s Town Centre zoning allows for a wide range of activities, including commercial, leisure, residential, tourist, cultural, community and civic services, with a height limit of 13 metres.
The other retail offering at 393 Remuera Road, Remuera comprises a 159 sq m commercial building on a 231 sq m site. It has high profile ground floor retail plus basement office, storage and amenities with car parking accessed via a service lane to the rear which also borders a large public car park fronting Clonbern Rd.
The property is fully leased to Eastern Bays Hospice Trust and is currently generating net annual rental of $80,000 plus GST p.a. The trust, which operates the Dove Hospice shop from the premises, has recently exercised a final two-year right of renewal on their lease and a market rent review for the property is due.
This offering is be auctioned on March 6, as part of Bayleys’ first Total Property auction for the year, unless sold prior. It is being marketed by Cameron Melhuish and Andrew Wallace.
“One of the most attractive attributes of this property is its high profile position in the heart of the Remuera Village, a sought-after boutique commercial precinct surrounded by one of Auckland’s most affluent residential suburbs,” says Melhuish. “This is also an add value opportunity here through rental growth and future development of the site which has a Town Centre zoning as well.”
Remuera Village comprises a mix of character and modern buildings with high profile ground floor retail and office or residential uses above. Long standing tenants including New World, Remuera Medical Centre, Remuera Pharmacy, Banque and Browns Fashion. The Hospice Shop has a Paper Plus store and an OPSM outlet on either side of it.
The final property being put up for sale by the family trust is a development site compassing 1323 sq m of land at 340-346 New North Rd, Kingsland (pictured below). It comprises:
340-342 New North Rd: a 678 sq m site, held in two titles of 339 sq m each, at the intersection with George St. Previously utilised as a car yard because of its prominent corner position, it has a small building at the rear.
344-346 New North Rd: on one 645 sq m title, next to the Dulux Trade Centre, it has a 188 sq m brick building divided into two flats.
The two parcels, which are available for purchase together or separately, are being offered for sale with vacant possession by tender, closing March 6 unless sold prior. They are being marketed by Scott Kirk, James Were and Andrew Wallace, also of Bayleys Auckland City & Fringe team.
Kirk says the land has a favourable Business-Mixed Use zoning with a 21 m height overlay.
“This property is ripe for a major commercial and/or residential development and presents options for developers, owner occupiers and add-value investors.
“Located between Kingsland and Eden Terrace, it’s a short distance from the vibrant Kingsland Village and two train stations and is within very easy commuting distance of Auckland’s CBD,’’ says Kirk. “This is in combination with its corner location, which means it benefits from plenty of natural light, makes it well suited to residential development. The size of the site and its high profile on a busy arterial road into and out of the CBD also lends it to a major showroom, bulk retail premises or another trade centre development.”