Auction of properties north of harbour bridge
The retail unit at Hobsonville Point Rd has a 10-year lease to a cafe. Photo / Supplied
Four Bayleys North Shore offerings up for auction in Bayleys’ latest Total Propertyportfolio will provide smaller investors with affordable access to this sector of the property market.
The four properties in Wairau Valley, Hobsonville, Milford and Silverdale will go under the hammer on Wednesday June 28, unless sold earlier. They have annual net rental income of between $22,500 and $55,500.
The largest offering is a 180sq m retail unit in the Wairau Junction retail complex at 170 Wairau Rd. It is tenanted by Wairau Foods & Spices and is producing net annual rental income of $55,500.
Wairau Foods & Spices is the retail business of an importer of Indian, Middle Eastern and Asian groceries, spices and bulk food carrying more than 2000 different products.
Matt Mimmack, who is marketing the property with Ashton Geissler, says the business had been wholesaling prior to establishing a retail presence at Wairau Junction on a three-year lease in February 2014.
“It’s obviously a location that has worked well for them because they renewed their lease for a further six years in February this year, with one further six-year right of renewal able to be exercised in 2023.”
Geissler says Wairau Junction attracts customers, and therefore tenants, because of its high-profile location on the corner of Wairau Rd and View Rd.
Wairau Junction, which was extensively refurbished and reconfigured in 2012 and has a mix of national and local tenants, is also popular with investors with two units selling at a Bayleys’ Total Property auction in April. A 54sq m unit with a 10-year lease to an Indian takeaway tenant from September 2013 sold for $454,000 at a 5.5 per cent yield, while a 112sq m unit - in which a Hell Pizza franchisee had just renewed its lease for three years - sold for $990,000 at a 5.45 per cent yield.
Unit 22, 170 Wairau Rd – indicated by a red border - is tenanted by Wairau Foods & Spices. Photo / Supplied
To the northwest, a 118sq m retail unit with a 10-year lease to a cafe at rapidly growing Hobsonville Point is also up for auction. Located on the ground floor of the Brickworks Apartments complex at 160 Hobsonville Point Rd, the property marketed by Steven Liu and Eddie Zhong is generating net annual rental income of $58,911.
Liu says the unit has been occupied by a cafe since the building was completed in 2015 and the internal space has recently been completely renovated, with a refreshed area for children, new outdoor furniture and more plants.
The current lease, which encompasses two car parks, runs until mid-2025, with two eight-year rights of renewal. Zhong says the landlord holds a security bond and personal guarantee from the tenant which will be passed onto the new owner.
The cafe is part of a mix of ground floor commercial tenants in the four-level Brickworks complex which straddles one of Hobsonville Point’s busiest corners with a frontage to De Havilland Rd as well as Hobsonville Point Rd - the main road in and out of Hobsonville Point. Neighbouring tenants include food and beverage operators Flame Pizza, Indian Summer and Akita Sushi as well as a medical centre, pharmacy and dental surgery. Hobsonville primary school is on the opposite corner site.
Zhong says the commercial premises and surrounding low-rise apartment buildings generate a good level of foot traffic and tenants benefit from a high level of vehicular traffic passing the Brickworks along Hobsonville Point Rd.
“The 160 Hobsonville Point Cafe also has access to a large courtyard area which provides extensive customer seating and is part of an attractively landscaped public plaza area along De Havilland Road and overlooks Hobsonville Point Park.”
The property at 47 Nile Road comprises two retail tenancies and a dwelling. Photo / Supplied
In Milford, another auction offering at 47 Nile Rd will provide its purchaser with exposure to commercial and residential markets. On 688sq m of land, the property has two retail tenancies totalling 132sq m on the road frontage and a 92sq m residential dwelling plus a free-standing garage at the rear of the freehold section.
The retail premises comprise an 84sq m superette - with the tenant also renting the three-bedroom house behind - and a 48.5sq m Thai takeaway with a lease until February 2021 that has two four-year rights of renewal.
The fully leased offering, which is being marketed by Terry Kim, Ranjan Unka and Zhong, is producing net annual rental income of $55,160 net.
Kim says the property is well positioned within the sought-after suburb of Milford, within walking distance of Lake Pupuke, the beach and shopping centre and handy to local schooling including Milford primary, Westlake Boys and Girls high schools and Carmel College.
“We have a committed vendor who has owned the property for 15 years and wants to retire,” he says.
“It’s an ideal Mixed-use property for an entry-level commercial investor although its Neighbourhood Centre zoning under the new unitary plan means it will also appeal to investors looking for opportunities to add value or to a developer.
“Longer term, the site has redevelopment potential, with the zoning permitting buildings up to three levels with ground floor retail and residential above, subject to obtaining the necessary resource consent. The upper residential levels would benefit from the site’s good sunlight and provide views out to Rangitoto.”
The other property to go under the hammer as part of the June 28 Total Property portfolio auction is a 173sq m industrial unit at 4 Titan Place, Silverdale. It is being marketed by Rosemary Wakeman of Bayleys North Shore Commercial in conjunction with Mustan Bagasra of Bayleys Orewa.
Built in 2017, the high-stud, north-facing unit constructed of tilt-slab concrete provides a mix of workshop and office space and comes with three-phase power, air conditioning, a security alarm system and two car parks.
The property is being sold with a two-year lease to Ice Industrial Engravers Ltd commencing July 1, 2017, which will produce net annual income of $22,500.
“This is an excellent opportunity to acquire an affordable, tidy industrial unit in one of New Zealand’s fastest growing locations,” says Wakeman.
“Small units are rarely available for sale or lease in this popular industrial precinct, only about three minutes from both the motorway and the new Silverdale town centre.”