Six units at Highland Park to be auctioned
A corner section of Highland Park Shopping Centre is dominated by the Coffee Club.
Six commercial units created from the redevelopment of a former cinema complex in Pakuranga will go under the hammer next month as part of Bayleys’ latest Total Property portfolio.
Three of the units, located at 20-22 Dunrobin Place, in the Highland Park Shopping Centre are occupied by expanding national food and beverage tenants on long term leases and two larger units have long term leases in place to recreation tenants. The remaining ground floor retail unit is vacant and is likely to appeal to an owner occupier or add value investor.
The units will be among 25 commercial and industrial premises for sale at Bayleys’ first Total Property auction in Auckland for the year to be at 11 am, Wednesday April 15, at the agency’s Viaduct office unless they sell earlier by negotiation.
The Highland Park units are being marketed by Sunil Bhana and Quinn Ngo of Bayleys Auckland in conjunction with Geoff Wyatt of Bayleys Manukau.
Interior view Coffee Club outlet, Highland Park.
Bhana says the Dunrobin Place property was formerly occupied by Events Cinemas. When the company moved out in early 2013 a major refurbishment and complete reconfiguration of the building was undertaken.
“It has been redeveloped to a high standard and subdivided into seven modern units on separate titles. One of the larger units, occupied by Discoveries Educare has been sold and the remaining six are being taken to auction,” Bhana says. “With net annual rentals ranging from $32,000 to $120,000 plus GST, these provide smaller to medium sized investors with an excellent opportunity to gain affordable exposure to the retail property market. All of the occupied units have eight to 10 year leases and most have annual fixed rental increases either to the Consumer Price Index (CPI) or 3 per cent.”
Ngo says the cinema redevelopment has attracted a number of high profile national and international brands that are expanding their presence at strategic locations across Auckland. They have chosen Highland Park because of its central presence off Pakuranga Rd which is one of Auckland’s busiest arterial roads in the growing Pakuranga and Howick residential catchment.
The Pita Pit outlet earns rent of $32,000 a year.
The largest unit up for auction is a 462 sq m Anytime Fitness centre which is producing net annual rental income of $120,000 from a 10 year lease from May 2014 with one five-year right or renewal and three-yearly rent reviews to market.
Founded in 2002, Anytime Fitness has become one of the world’s largest and fastest growing, 24 hour fitness franchises operating out of 2788 locations with total global membership numbers in excess of two million. The franchise includes 21 centres throughout New Zealand.
For the fourth consecutive year, Anytime Fitness was ranked No 1 in category and No 2 Overall in Entrepreneur magazine’s 2015 Franchise 500 List.
Occupying a prime corner position in the complex is The Coffee Club which also has an outdoor seating area under a canopy extension to its 110 sq m unit. An eight year lease from March 2014 is producing current net annual rental income of $55,000, with fixed annual rental increases of 3 per cent and one eight-year right of renewal.
Coffee Club is an international cafe business with close to 375 cafes set up since its foundation in 1989 serving more than 40 million cups of coffee per year. New Zealand’s first Coffee Club opened in 2005 and it now has 55 cafes nationwide. Its franchised operation has been recognised by the Westpac New Zealand Franchise Awards, winning best Food & Beverage and best Franchise System for four consecutive years.
Located next door in an 82 sq m unit is a Pita Pit outlet which is earning $32,000 a year from a 10 year lease commencing in March 2014 and which has two five-year rights of renewal. Its lease also has built in rental growth indexed to the increase in the CPI with an upper cap of 3 per cent per annum and a market review every five years.
Pita Pit is a rapidly growing food brand that specialises in fast serving healthy food. Established in Canada in 1995, the franchise now has over 425 stores internationally. It expanded into New Zealand in 2007 where it now has 73 premises with a further 10 opening soon.
The Tank Juice outlet in Highland Park earns $35,000 a year in rent.
“Pita Pit is becoming one of the most popular fast-serving food destinations for New Zealanders, capitalising on the growing trend towards quick, convenient, healthy eating,” says Ngo.
Also in expansion mode is Tank Juice which occupies an 88 sq m unit which is producing net annual rental income of $35,000 with fixed annual adjustments of 3 per cent. The unit’s eight year lease runs from May 2014 and comes with two six-year rights of renewal.
Tank Juice Bar was established in Wellington in 2001 offering smoothies and juices made from real fruit and vegetables. The business has grown significantly since 2010 following the introduction of salads and wraps and now operates in 30 locations across Auckland and 52 throughout New Zealand.
Next door is an identical sized 88 sq m rectangular unit which is being offered for sale with vacant possession “With the annual rental assessed at $35,000 per annum plus GST, this affordable refurbished unit represents an opportunity for an investor to add to its value by leasing it up or it would also suit an owner occupier wanting to benefit from the high profile retailers that are based at Highland Park,” says Bhana.
Neighbouring this unit is 180 sq m of space occupied by Flow – Academy of Motion, which is a multi-disciplinary dance and movement company. It has an eight year lease from June 2014, with two eight-year rights of renewal. This is producing initial net annual rental income $54,000 with annual CPI adjustments. Bhana says the company has utilised the former cinema building’s eight metre high stud to fit the premises out to a high standard to cater for a wide range of movement activities.
Wyatt says the property forms part of the established commercial and retail precinct of Highland Park in the heart of Pakuranga. The shopping centre contains a wide range of other well-known tenants, including Burger King, Pizza Hut, a Caltex petrol station, with a Subway outlet, Highland Park Community Link (Work & Income), and a large Saveway supermarket.
“The centre has multiple entrances from Pakuranga Road and Dunrobin Place, with a large amount of shared common car parking available on-site, including plenty of parks directly in front of the six tenancies available for sale.”
From left to right: Sunil Bhana, Quinn Ngo & Geoff Wyatt of Bayleys.