Liquor outlet to slake thirst of individual investors
Retail Unit A at 186 Te Irirangi Drive, Flatbush-Ormiston.
A retail investment property leased to a liquor outlet on a long lease in the growing hub of Flat Bush-Ormiston, southeast of Auckland city, will be sold by auction at the end of this month.
“This property sits within a popular price bracket for individual investors,” says Gareth Fraser of Colliers International who, with colleagues Charlie Oscroft and Alan Pracy, is marketing Unit A, 186 Te Irirangi Drive for sale by auction at 11am on August 26 at Colliers’ 151 Queen St auction rooms.
“Smaller retail investment properties have wide appeal owing to their easily understood fundamentals, and the market is now showing real strength especially in fast growing locations like Flat Bush-Ormiston,” Fraser says.
The property is generating $122,340 in annual net rent from the lease to Liquor Legends, he says.
“With the low borrowing rates that are available, we are seeing many first time buyers enter the commercial property investment market to purchase strongly tenanted and well located retail properties. In many cases, these buyers already own residential property and small retail investments like this are the perfect opportunity to diversify,” Fraser says.
Oscroft says that with five years remaining on the lease term and the potential for income growth through a rent review, the unit presents a sound investment.
“For the first time investor in commercial property, this property ticks all the boxes and constitutes an easy to manage, hassle free investment,” he says. “It would be ideal for people seeking to diversify into commercial property with an income generating asset that can be acquired at an accessible price for many buyers.”
Liquor Legends was established in 2004 and has four outlets around Auckland. The local operator’s lease for the modern, 586 sq m unit extends to June 2020, with the right to renew for a further eight years.
Pracy says the business has been in this location since 2013, with the unit having housed other liquor stores under other brand names since 2003.
The property has off street customer car parking and is located within a popular local commercial centre encompassing a Z service station, Super Value supermarket, a pharmacy and several other retail and service outlets.
“The centre is well-established in this location and is a convenient stop for local residents, with its location on a main local road and ample parking provided, Fraser says.
Oscroft says Flat Bush-Ormiston area is one of the fastest-growing suburbs in Auckland so this sale presents an excellent opportunity to buy into the area and benefit from predicted future growth.
“Ormiston is set to become an entirely new town, with the population exceeding 125,000 people by 2031. This growth would provide a significant boost for property values in the surrounding area.”
Oscroft says the site has excellent access to the southern motorway section of State Highway One via nearby interchanges – “a factor that has made the surrounding locality desirable to businesses and residents”
Gareth Fraser of Colliers (top). Charlie Oscroft of Colliers (Center). Alan Pracy of Colliers.(Bottom)