Browns Bay retail units up for auction
The retail units benefit from a favourable position in beachside Browns Bay.
Brand name tenants in prime location opposite supermarket will appeal to mum and dad investors
Six retail units occupied by national brand name tenants in a new shopping centre due to open this month in Browns Bay on Auckland's North Shore have been placed on the market for sale by auction.
The investment properties, at 26-28 Anzac Rd, are being marketed by Shoneet Chand and Mike Ryan of Colliers International and will go under the hammer individually at 11am on Tuesday, October 21 at 151 Queen St, Auckland, unless they are sold before the auction day.
The six units for sale all have new lease terms of either six or eight years, with further rights of renewal and annual rent growth built in. They are occupied by Muffin Break, St Pierre's Sushi, Tank Juice Bar, Caf Anatolia, The Meat Room (a gourmet butcher) and Body Works (a chiropractor).
The retail centre, which is in the final stages of construction, is positioned adjacent to an established Countdown supermarket and will also be home to a 24/7 gym and a Discoveries Educare childcare centre.
Chand says it benefits from a favourable position in the beachside suburb's popular commercial zone. "With the popularity of Browns Bay as a shopping and commercial hub for the surrounding large residential area, the retailers in this centre are well placed to benefit from a position in what is an established and thriving local retail precinct."
Ryan says that with the annual net rentals on the units ranging from $38,400 to $78,400, they sit within a popular and accessible price bracket for individual investors.
"We expect individual investors, as well as those looking to establish a foothold in the retail property market or perhaps diversify out of the residential market, to be particularly interested in these properties," he says.
"Retail properties have long been extremely popular with 'mum and dad' buyers, owing to their easily understood fundamentals, and new properties with strong tenants in prime locations like these are always keenly sought-after."
John Bowring, Colliers International's national auction manager, says that with all tenants on new leases with rights of renewal and built in, annual rental growth, the units present sound investments for people looking to add commercial property to their portfolios.
"It's very difficult to find modern, high-quality commercial investments, with long lease terms in a well-established location like this in such an affordable price range," Bowring says.
"For the first-time investor in commercial property, these units tick all the boxes and constitute easy to manage, hassle-free investments. They would be ideal for people seeking to diversify into commercial property with income-generating holdings which require a minimal capital outlay."
The retail units, which range from 80sq m to 160sq m, are accompanied by ample car parking for tenants and face a Countdown supermarket, as well as being located across the road from a New World which is under construction.
Chand says the mix of tenants has been carefully chosen to meet the community's requirements. "The combination of retailers and services in the centre has been selected to fill a gap in the local market and offer a crucial convenience factor for people visiting the local supermarkets and other shops."
Ryan says the retail centre serves a long established and large residential catchment and, given the significant population growth which is forecast for the North Shore, the new centre looks set to capture good customer numbers into the future.
"The units were all committed to by retailers months before the completion of construction," he says. "The fact that all the units were taken up well before the centre's opening shows that this area and its strong population base are very attractive to national retail chains." The centre was developed by Auckland-based Aubrey Edward Group, which is a well-established development company.
Ryan says Browns Bay commercial centre is a vibrant and bustling shopping destination just metres from the beach and seafront. "In addition Browns Bay is home to a whole host of national brand name tenants including ANZ, OPSM, Flight Centre, Pizza Hut, Paper Plus, Westpac, ASB and many more.
"This side of the Browns Bay commercial centre is undergoing further development with a New World supermarket being built across the road from these units, and multiple apartment developments nearby."
Chand says that Browns Bay also benefits from good motorway and public transport links making it sought after by retail and commercial tenants, and this has fuelled significant recent development.
"In recent years, several low rise apartment developments have been introduced in Browns Bay with the aim of revitalising the area for population growth," he says. "Future development along Clyde Road is also on the cards."
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