Five split risk Howick retail units
An elevated view of Howick retail centre at 219 Moore St in which five units are for sale
Five freehold strata units in a fully leased retail convenience centre in central Howick are to be auctioned individually early next month.
Built 10 years ago, the complex comprises two one-storey buildings with a total of 10 tenants located on just over half a hectare of land at 219 Moore St on the fringe of the central Howick retail area.
The units are among over 30 properties featured in Bayeys’ latest Total Property portfolio which will be auctioned in Bayleys’ central Auckland auction rooms on December 2 unless they sell before the auction day by negotiation.
“This is an attractive opportunity to invest in a well maintained, modern retail complex,” says Millie Liang, of Bayleys Auckland who is marketing the units with colleague Tony Chaudhary of Bayleys South Auckland.
“A major attraction, that makes this a bit different from most retail unit offerings, is that the purchaser’s investment risk is split across two tenancies within each unit. The tenancies also have different lease terms and expiry dates which provide more flexibility and security than a unit with just the one tenant.”
An evening street level view of the Howick retail centre in Moore St.
The units, range in size from 318 sq m to 615 q m and are generating net annual rental income ranging from $77,589 to $158,158. Liang says some of the rents are under market, providing potential for future rental growth.
The units at 219 Moore Street comprise:
- Unit A of 318 sq m earning net annual rental income of $77,589, this unit is ccupied by a Bin Inn store which has just exercised a four year right of renewal. The second tenant is HHH Advertising Media Limited with a four year lease from February 2015 with two three-year rights of renewal. Bin Inn is a nationwide network of 37 independently owned stores with an emphasis on quality wholefoods and specialty grocery items, including baking, brewing and gluten-free products.. HHH Advertising Media is a manufacturer and retailer of advertising products and services.
- Unit B of 615 sq m generates net annual rental income of $158,158 and is tenanted by Howick Fruit Market Limited, trading as Fruit World, which has been in occupation since 2011 on a six year lease with two six-year rights of renewal. The other tenant is New Howick Pizza on a three-year lease. Fruit World was established in 2001 and has 29 stores in the northern North Island specialising in sourcing and selling fresh fruit and vegetables. New Howick Pizza has an extensive pizza menu and offers online ordering and delivery to surrounding residential areas.
- Unit C of 442 sq m produces net annual rental income of $101,892 and is leased to a new Chinese restaurantthat is about to open its doors on a new five-year lease with two five-year rights of renewal. In the same unit, a Kip McGrath education centre is also on a five year lease from July 2015 with two three-year rights of renewal. The first Kip McGrath centre was established in New South Wales 36 years ago and has expanded into a global network of 600 tutoring centres owned and operated by qualified teachers offering tutoring to children from pre-school through to Year 13. There are 105 Kip McGrath centres in New Zealand, Fiji and Samoa..
- Unit D of 327 sq m earns net annual rental income of $80,200 and is occupied by pet food retailer Raw Essentials and a St John Opportunity Shop, on differing three-year leases with rights of renewal. Raw Essentials specialises in natural, unprocessed food products for dogs and cats and has eight stores in Auckland and Hamilton. St John has close to 30 community “op shops” around the country which sell donated goods to help raise funds for the organisation. It has entered into a new three year lease on its Howick store from November 2015.
- Unit E of 322 sq m generates net annual rental income of $73,156 and is leased to Miuwa Cafe which has a high quality fit out and a three year lease from March 2015, with two three-year rights of renewal. The neighbouring 2 Dollar Shop has occupied its place in the unit since 2012 on a six year lease and has one six-year right of renewal.
Liang says Units A and B are located in one building while C, D and E in the other. The units are constructed of reinforced concrete slabs and columns and steel beams. The external walls comprise a combination of precast concrete panels, aluminium sheeting and glass facades. All the shops have reinforced concrete roofing with a waterproofed membrane and suspended ceilings with recessed fluorescent lighting.
“The units have been well positioned around a total of about 82 common car parks which means there is plenty of customer parking for all of the tenancies including parks right outside their front doors,” says Liang.
Tony Chaudhary says the 5473 sq m site also has over 70 metres of road frontage which provides good exposure for tenants to high volumes of traffic travelling along Moore St, a busy road leading into the centre of Howick.
The property is located in the Business 5 area of central Howick with the surrounding area having a mix of service retail and light industrial premises.
Chaudhary says a New World supermarket which has recently been opened adjacent to the property should significantly enhance the profile of the centre and increase the amount of foot and vehicular traffic.
“The opening of the nearby supermarket should also increase the units’ appeal to complementary national retailers who often like to position themselves close to supermarkets because of the volume of people they attract.”
Chaudhary says the Moore Street retail centre draws its customers from an expanding and increasingly wealthy residential catchment area which includes Howick, Cockle Bay, Botany Downs, Dannemora, Golflands and Pakuranga.
Millie Liang of Bayleys Auckland (left), and Tony Chaudhary (right) of Bayleys South Auckland.
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