Big auction includes rare Remuera retail character

9:00 AM Wednesday September 16, 2015 Colin Taylor

At left the two-level retail and residential building for sale at 571 Remuera Rd with florist shop at street level.

A Remuera property with a florist shop occupying the ground floor and an apartment above is one of number of standalone Mixed Use zoned and freehold properties up for auction next week as part of Bayley’s latest Greater Auckland portfolio.

The 138 sq m,  two-level building on 157 sq m  of land at 571 Remuera Rd is among 19 properties scheduled to go under the hammer in Bayleys’ Auckland auction on Wednesday September  23 unless sold earlier by private treaty.  

“Properties in this part of Remuera are tightly held and rarely become available,” says Tony Chaudhary of Bayleys South Auckland who, with colleagues Amy Weng and Cameron Melhuish of Bayleys Auckland, is marketing the Remuera Rd property.

“This one comes with under-used surplus land at the rear of the site which provides plenty of opportunity for the next owner to increase the income and value of the property.” 

Chaudhary says the character building dates back to the 1920s and features brick walls, timber windows and doors; and tongue and grove flooring. The first floor has two bedrooms, a living area and a bathroom with a kitchen at the rear of the ground floor's retail space. Sheds at the rear of the property are used for storage. 

The current lease to a florist has been renewed several times since it commenced in 2009, most recently in August for a further two years. It is producing net annual rental income of $31,500 plus GST. Chaudhary says there is considerable potential to increase this income by upgrading the building and possibly increasing its size.

The property is zoned Business Neighbourhood Centre under the Proposed Auckland Unitary Plan which applies to small shopping strips located in residential neighbourhoods. It allows for buildings of up to three storeys high with residential use on upper floors and a variety of commercial uses at ground level.

The property for sale is part of a cluster of retail premises located at the Upland Rd end of Remuera Rd with well established businesses including cafes, bars and eateries along with the Remuera Village Medical Centre and Harvey Furnishings.

“Shops on busy Remuera Rd benefit from great exposure to large numbers of passing cars, buses and pedestrians and draw customers from a wealthy surrounding residential catchment,” says Chaudhary.

The property has a Capital Valuation $1,080,000, with $700,000 of this being the land value. “It’s a valuable piece of land because of its strong location and has lots of future potential,” says Chaudhary.

Oscar Kuang and James Chan of Bayleys’ international division and Peter Migounoff of Bayleys South Auckland are also marketing two standalone properties further south which will go up for auction next Wednesday.

One is a 500 sq m two-level building on a 430 sq m site at 202 Great South Rd, Manurewa.  Kuang says it is well positioned in the Manurewa Town Centre, with nearby national and international tenants including New World, McDonald's, KFC and TAB.

A ground floor tenancy is currently providing holding income of $40,956 plus GST per annum. It is occupied by a fully licensed bar with nine gaming machines and has a three year lease from October 2012 with one three-year right of renewal. Kuang says there is immediate prospect of increasing the property’s income by refurbishing the vacant upstairs office space and converting it to a better use, perhaps residential.

“The property benefits from high foot traffic, dual access, excellent signage exposure and good car parking in the vicinity,” says Kuang. “It would suit an investor looking for an add value opportunity or an owner occupier seeking high profile premises on a major arterial route.” 

In Papakura’s CBD, two adjoining two-level buildings are for sale at 28-30 Broadway. Totalling 569 sq m they are located on 488 sq m of land in two separate titles. The ground floor of 30 Broadway is occupied by a Vietnamese restaurant and café on a six year lease which runs until October 2017 and is producing current net annual rental income of $28,665. The building at 28 Broadway is for sale with vacant possession. 

“This property is also an excellent add value opportunity being situated in a prime location in the heart of Papakura’s town centre among a number of high profile anchor tenants, including Farmers, Flight Centre and Subway, and a short walk to the train station and bus hub,” says Kuang. “With several significant housing developments underway and more planned, Papakura is currently an investment hot spot and this offering provides an opportunity to be part of the area’s future growth.”

What’s on offer?

The property: Two level retail and residential character building.

Location: 571 Remuera Rd, Remuera.

Agency: Bayleys.

Sales method: Auction on Wednesday September 23.

Features:

  • Building area of 138 sq m on 157 sq m of land.
  • High profile frontage to arterial road.
  • Add value potential with surplus land at the rear.
  • Prime location in wealthy suburb.
  • Earns net annual rent of $31,500 plus GST.

For more information on this property visit:
TrueCommercial.co.nz