An urban development site in a high-growth location along Auckland’s western corridor, with diversified cashflow, features enormous potential for investors eager to collect income while making development plans.
The 2,315sqm (more or less) freehold land parcel at 3068-3088 Great North Road is held in two titles and is in a prime position less than 300m away from the award-winning New Lynn Transport Interchange and railway station.
Bayleys national director Asian Markets James Chan says the property is offered to the market at a time of recalibration, where attractive features such as split-risk cashflow, strong zoning fundamentals and value uplift potential become more crucial for investors.
“Income has become the hedge against inflation as New Zealand’s property market cycle progresses, and the ability to collect a diversified income from 11 tenants gives this property an edge as investors review their balance sheets to seek and take advantage of the new opportunities offered by an emphasis on intensification.
Start your property search
“In addition to this, large-format premises in high-traffic urban locations are seeing consistent demand for both sale and lease as international brands expand into New Zealand and hybrid
working fundamentals increase interest in neighbourhood shopping centres,” he says.
Chan is marketing the property for sale with Bayleys Auckland Central Asian Market colleagues Owen Ding and Karen Yung.
The property will be offered for sale by international tender closing at 4pm on Thursday 23rd March 2023 (unless sold prior).
Comprising 11 tenancies largely occupied by longstanding tenants, the premises generates an annual net rental income of approximately $450,000 + GST.
National brand fast-food retailers, including Burger Fuel, Domino’s and Sal’s Pizza, occupy the premises, in addition to a barber’s shop, pharmacy and optometrist, which each have leases of varying terms.
Ding says the property’s preferable Business - Metropolitan Centre zoning, which permits intensive mixed-use activity and a build height of up to 72.5m, is a key feature for investors considering further development of the premises.
“Located along Auckland’s western corridor just 10 kilometres southwest of downtown Auckland, the site is superbly situated to benefit from a growing residential catchment and adjacency to the established commercial precinct.
“Nearby LynnMall Shopping Centre features more than 100 retail stores across a broad range of food, fashion, entertainment, gifts and services, while the nearby Brickworks dining lane has multiple restaurants, an eight-screen cinema complex, and an 18-hole mini golf course.
“Given substantial recent investment into public transport, roading and amenities which has contributed to the growth of the apartment market locally, developers may consider mixed-use development with commercial occupants on the lower levels and residential units above or explore the option to buy and hold in a high-growth location,” he says.
Underpinning the property’s development potential is dual street access.
Primary access is from the
main arterial Great North Road – a major Auckland thoroughfare which connects the fringe of Auckland’s CBD to West Auckland.
The property benefits from a secondary access point from McCrae Way.
Yung says the location has become an extremely attractive place to live and visit, given its central network of rail, road and cycle links.
“More than 1.6 million commuters travel via the New Lynn train station each year, a metric set to increase with linkage to the City Rail Link – New Zealand’s largest-ever transport infrastructure project set for completion in 2024.
“In addition to this, strong population growth and the government mandate to provide more homes at scale and pace adds interest for apartment developers or those with expertise in mixed-use high-rise developments,” she says.
- Article supplied by Bayleys
