Sports star buys Mt Wellington centre
From left, Layne Harwood and Josh Franklin of Knight Frank outside the Mt Wellington Highway retail centre.
An anonymous international sports star has bought a new retail development in the Auckland suburb of Mt Wellington.
The retail centre at 200 Mt Wellington Highway is anchored by National Childcare on a 20-year lease with built-in Consumer Price Index rental reviews. The majority of the remaining leases are to well-established national or international retail brands including Tank, Sals Pizza and Zambrero.
“The sportsperson can’t be named at this time but he has close ties with New Zealand,” says Layne Harwood, country head and national director – capital markets for Knight Frank who negotiated the transaction with colleague Josh Franklin.
Harwood says the sporty buyer was looking for a commercial investment opportunity and Knight Frank was engaged to advise on an investment strategy.
“We determined that an off-market approach suited the investor best and that a low-risk, low-maintenance development which was multi-tenanted with extended tenancy profile, was the ideal investment. It was challenging to find - and particularly in this market.”
“However, 200 Mt Wellington Highway suited that investment strategy perfectly. It was in the process of being developed by Broadway Property Group which has a reputation for understanding retail tenants and for delivering high quality investment product with long term investment appeal.”
Franklin says the new development occupies on a high profile corner location with dual access and is conveniently located between Stonefields and Sylvia Park.
It is adjacent to the new Auckland Manukau Eastern Transport Initiative (AMETI) transport link, close to key staff catchments and is 1.5km from the Mt Wellington State Highway 1 interchange.
“Aside from being new, which was one of the investor’s key requirements, the development provides multiple tenants with a weighted average lease term [WALT] of close to 11 years. The purchase price was close to $13 million and reflected a yield of 5.6 per cent on the net annual income.”
Harwood says the buyer is “completely hands-off” so an easily managed property with a low risk profile was the primary requirement.
“The sale of 200 Mt Wellington Highway is an excellent outcome for the investor, who is extremely happy with the acquisition and equally good for Broadway Property Group which has achieved a premium price through an off market process.”