New units at Warkworth’s The Grange
The two units are among 31 within The Grange centre on the outskirts of Warkworth. Photo / Supplied
A newly-built unit occupied by a gymnasium and another housing an engineering firm have been put on the market within The Grange retail convenience centre on the southern outskirts of Warkworth just north of Auckland.
The Grange is high-profile purpose-built retail hub located at 67 Auckland Rd on one of busiest stretches of State Highway 1.
In total, the centre comprises 31 units with a mix of national and local businesses, and is anchored by McDonald’s and the BP Station, joined by Domino’s Pizza, Coffee Club, Tank Juice, Educare Childcare, and St Pierre’s Sushi.
The latest two freehold units for sale at The Grange feature in Bayleys’ latest Total Property portfolio magazine and are being individually marketed for sale at auction on June 28 by Bayleys Auckland and Bayleys Warkworth. The sales process is being jointly run by James Chan, Matt Lee and Jan Hutcheson.
Unit 15 within The Grange comprises 367.5sq m with Fit Factory Gym as the tenant. The gym, which operates on a 24/7 basis, has signed a new six-year lease running through until 2023 which generates net annual rent of $91,925 plus GST, with yearly rent reviews tied to the Consumer Price Index (CPI) plus one per cent. The gym operates the full range of cardio and strength-conditioning equipment and is fitted out with separate toilet and show facilities for members.
Unit 15 houses the Fit Factory Gym as a tenant. Photo / Supplied
Unit 21A of 60.9sq m is tenanted to Hawthorn Geddes Engineers & Architects Ltd – also on a newly-signed six-year lease running through until 2023, that earns net rent of $21,315 per annum plus GST and annual rent reviews tied to the CPI. Established in 1962, Hawthorn Geddes Engineers & Architects Ltd is the largest locally-owned multi-discipline practices of its type in Northland – contracted to projects throughout the province and with its head office in Whangarei. The firm provides architecture and project management services, civil engineering skills, structural engineering capabilities, and geotechnical and environmental expertise.
Chan says tenanted properties within The Grange have already been sold in four staggered phases over the past two years. He says there has been an exceptionally strong clearance rate on a range of tenanted units offered for sale to investors on an individual-titled basis in a number of stages.
Leases have ranged from five to 10 years and annual net rentals from $30,000 to $92,500. Yields on these sales have ranged from 5.2 per cent to 6.5 per cent at prices between $475,000 and $3,350,000.
Unit 21A is leased to Hawthorn Geddes Engineers and Architects Ltd. Photo / Supplied
Chan says investors have been attracted by The Grange’s very prominent location, with its SH1 positioning providing high profile exposure to about 6.3m cars a year which pass its entranceway.
“Other drawcards for investors are the new nature of the premises and their long leases, most of which also have built in annual rental growth,” Chan says.
“The Grange is the only retail hub of this scale along State Highway One travelling south between Wellsford and Auckland. The centre is well-positioned at the entrance to Warkworth with ease of access from both sides of the road, and is surrounded by residential developments of about 200 houses under construction or scheduled for construction.
“As a major growth location, Warkworth is projected to increase to a population of 20,000 over the next 30 years.”
The area immediately adjacent to the Grange hosts a range of established businesses - including Mitre 10 Mega, Carter's, Repco and VTNZ.
Matt Lee, James Chan and Jan Hutcheson of Bayleys