Retail units in fast-growing Millwater

3:40 PM Friday March 2, 2018 True Commercial

The 177 Millwater Parkway units are between Silverdale and Orewa. Photo / Supplied

Three new retail units in a fast-growing Auckland’s location are on the market through Colliers International.

Located at the heart of the residential subdivision of Millwater, between Silverdale and Orewa, the units in 177 Millwater Parkway are close to a growing number of homes, schools, sports fields, and walking and cycling tracks.

Broker Euan Stratton is marketing the retail units for sale with colleagues Sean Honeycombe and Matt Prentice.

Stratton says it is an excellent opportunity for investors to add one, two or all three properties to their portfolios.

“These high-quality retail spaces are well positioned to benefit from a growing catchment that includes many young, well-off families,” says Stratton.

“The units are part of the new Millwater Central Terraces development — a mixed-use residential and retail complex completed last year by reputable developers Broadway Property Group,” he adds.

“The timeless yet contemporary design was created by award-winning Julian Guthrie Architects, while Broadway developed the property to a very high standard.

“Millwater Central Terraces builds upon and complements the success of Broadway’s adjacent Millwater Central retail centre, which is extremely popular with the area’s rapidly expanding community.”

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Invive Spa leases one of the units at 177 Millwater Parkway. Photo / Supplied

Stratton says two fully leased units are for sale by individual auction at Colliers’ North Shore office on March 21, unless sold earlier.

Both have long-term leases to established tenants, backed by the added security of personal guarantees.

Unit 44 is leased to HelloWord Travel — an international travel agency with more than 2000 independent franchises in Australia and more than 60 in New Zealand.

The 86.38sq m unit is signed to a five-year lease earning $34,552 net plus GST a year, with market rent reviews every two years. Two rights of renewal of four years each extend the final lease expiry to December 2030.

Unit 49 is leased to The Goldsmith — an independent jeweller, previously based in Orewa, that has been manufacturing and restoring jewellery since 1978.

The 86.51sq m unit is on an eight-year lease earning $34,604 net plus GST a year. Fixed Consumer Price Index reviews take place every two years, with market rent reviews every four years. An eight-year right of renewal extends the lease to 2033.

Along with the personal guarantee, the lease is further strengthened by a bank bond.

Stratton says the units make for excellent ‘bottom-draw’ investments.

“With new tenants, advantageous lease terms, and new construction in a massive growth area, these investments could be viewed as ticking all the boxes,” he says.

Unit 42 is for sale by deadline private treaty closing on March 28, unless sold earlier.

Honeycombe says the 172.82sq m unit is partially leased to Invive Spa, which occupies 108.11sq m, while the rest remains vacant.

Invive is an independent local health spa business signed to a six-year lease earning $43,244 net plus GST a year, with market rent reviews every two years. A five-year right of renewal extends the lease until July 2028.

Honeycombe says the 64.71sq m vacancy is the last available space on the retail strip, which has a range of opportunities for both owner-occupiers and investors.

“Owners could occupy the vacant space immediately, with the added benefit of additional income from the lease to Invive.

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Unit 49 is leased to The Goldsmith. Photo / Supplied

“Alternatively, investors will appreciate the security of a split-risk investment in a rapid growth area.

“Investors can also add value in the short term by letting the remaining space, which would suit retail or professional users.

“This is the last available space in the development and is of a size and shape that will appeal to a wide range of businesses.

“The rent potential is up to $450 per square metre or returning $29,119 net plus GST annually.”

Prentice says the properties for sale are among 12 ground-floor retail units in Millwater Central Terraces.

“The development was specifically designed to benefit both residents and retailers in this location,” he says.

“Businesses can draw on customers from the 37 terraced houses above and behind the retail units, as well as the wider retail catchment of the wider Millwater subdivision.

“Residents of the terraced houses appreciate being able to access shops, cafes, schools, parks and walking paths right on their doorstep.

“Those in the wider Millwater area have the convenience of being able to shop and eat in their own neighbourhood, without having to negotiate the traffic or busy intersections of Silverdale. Instead, they can park directly outside their local shops.”

Prentice says a number of schools are nearby, which brings a large number of parents and teachers to the during school pick-up and drop-off, many of whom are on foot.

The property also draws on passing traffic from the surrounding sports fields on weekends as well as after school and work.

A hockey turf is under construction directly across the road from the shops, while the Metro Park sports field is nearby.