Papatoetoe site has future options

5:00 AM Wednesday September 14, 2016 True Commercial

An aerial view of the 1459sq m site in two titles at 320 and 322 Great South Road.

A substantial commercial property holding in Papatoetoe’s town centre is for sale offering multiple income streams and longer term development potential.

Located on a 1459sq m site in two titles at 320 and 322 Great South Rd, the property comprises a two-level commercial building of about 1040sq m.

Now leased to four tenants and generating total net annual rental income of $119,415, it is being marketed by Matt Lee and James Chan of Bayleys’ international division in conjunction with Tony Chaudhary of Bayleys South Auckland.

The property is among 27 which will go under the hammer at Bayleys’ next Auckland Total Property auction on September 21.

“This is a high-profile split-risk investment property with multiple income streams from four well established tenancies,” says Lee.

He says the longest established occupant Li'l Abner Takeaways is one of South Auckland’s most popular takeaway bars, operating from the premises for more than 30 years.

“Its name came from the popular American comic strip, Li'l Abner, which ran for over 40 years and featured in papers in 28 countries. It offers a wide range of food and is well known for its specialty Yokum burgers.”

Also in occupation for nearly 10 years has been the Village Foodmart which offers a wide variety of grocery items and is open seven days a week.

Wireman Electrical, a multi-service electrical company which was previously Ron’s Electrical Services and has operated since 1996, is the other ground floor tenant. It offers a range of electrical products and services to residential and commercial customers. It sells reconditioned stoves from the front of its premises with the balance used as office and workshop accommodation.

The building’s upper level is undergoing an extensive renovation and fit-out in preparation for its occupation by The Fiafia Niteclub which has taken a new five-year lease.

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The longest established tenant at the property is Li'l Abner Takeaways, which has operated there for more than 30 years.

The night club has been operating on Great North Road, New Lynn since around 2010.

Chan says an area of surplus land at the rear off the property, is used for casual parking, offering future development potential. “It’s on its own 595sq m title which provides a number of options for the next owner who could look at adding value to it or who could on-sell the land to a developer.

“The property is also within the Papatoetoe Town Centre zone under the new Unitary Plan so that also opens up additional opportunities with a special height limit of 18 metres and Auckland Council keen to encourage more residential accommodation in these town centre zones.”

Chaudhary says the property is well-positioned within Papatoetoe’s commercial and retail hub and benefits from substantial frontage to Great South Rd which ensures its tenants receive a high level of exposure to passing pedestrians and vehicles.

Papatoetoe Central School and Papatoetoe Recreation Ground are located across the road with the latter containing a wide range of sporting and recreational facilities including the Centennial Pool and Leisure Centre, hockey and rugby grounds and a bowling club. Hunters Plaza, home to approximately 50 stores, is a short distance up the road.

“This location has long been established as a successful automotive sales and commercial and retail centre, with its ease of access to and from the southern motorway drawing clientele from a wide and diverse cross section of the Greater Auckland region,” says Chaudhary.

“In the surrounding area, the Old Papatoetoe district is about to undergo a major rejuvenation with Auckland Council’s Panuku Development and Foodstuff's redevelopment of the Old Papatoetoe Mall and New World supermarket site due to commence shortly.”