A highly prominent bulk retail development anchored by blue-chip national tenants in one of the North Shore’s most tightly held commercial precincts represents an unbeatable purchasing opportunity for investors.
The strategically located property at 7-19 Croftfield Lane in Wairau Valley has an impressive total net lettable area of 3276sq m, providing a total net annual rental income of $861,249 plus GST.
Warehouse Stationery is the main anchor tenant occupying Unit A, with fellow blue-chip tenants Curtain Studio and Morgan Retail in Units B and C.
The investment also provides a total of 145 carparks, of which 82 are in the basement.
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The property is currently split into four separate unit titles, providing future flexibility for the new owner.
Colliers Directors Shoneet Chand and Matt Prentice have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 3 November, unless sold prior.
Warehouse Stationery has become a household name by revolutionising the stationery retail business in New Zealand. The company opened its first store in Wairau Park in 1991 and has now grown to more than 70 locations nationwide.
The current lease agreement expires in December 2023, with a further right of renewal for six years providing a final expiry in December 2029. Annual rental income is approximately $452,047 plus GST.
A CPI rent review is scheduled for December 2023, while a market rent review based on the greater of either market rent capped at 10 per cent or CPI will take place in 2026.
Curtain Studio are experts in curtains and blinds and offer both readymade and custom-made products of superior quality and great value.
They are in the midst of a six-year lease with a final expiry in January 2024 with CPI reviews due in February 2022 and the following year. The annual net rental income is $184,000 plus GST.
The tenant in Unit C is furniture importer and wholesaler Morgan Furniture, home of the original La-Z-Boy Recliner.
They hold an eight-year lease that expires in June 2026 with two further rights of renewal of four years each, which include market rent reviews on renewal.
The current net annual rental income is $191,017 plus GST with 2 per cent annual increases, except on market rent review dates with the next review due in June 2022.
Chand, Director of Investment Sales at Colliers, says this site is one of the most exciting investment opportunities to arrive on the market this year.
“It is extremely rare to see a property of this size become available in such a prominent position in Wairau Valley,” Chand says.
“The building is well-placed with a strong tenant covenant with favourable lease terms, meaning it shapes as an ideal split-risk investment, providing immense security for buyers looking for premier assets to acquire.
“The building is positioned right next to State Highway 1 making this a highly visible asset for passing motorists and the site benefits from easy access via the Tristram Avenue interchange.”
Prentice, Director of Industrial Sales and Leasing at Colliers, says Wairau Valley is a growing retail hub that has experienced huge expansion.
“This site enjoys convenient access from the Northern Motorway with the CBD approximately 15 minutes away in normal driving conditions, while it is readily-accessible to other parts of the North Shore,” Prentice says.
“Wairau Valley is characterised by a mixture of bulk retail developments alongside smaller retail shops, and automotive outlets, but this property represents one of the standout offerings in the area.”
The property is zoned as Business - General Business Zone under the Auckland Unitary Plan. This zoning provides for business activities from light industrial to limited office, large format retail and trade suppliers.
- Article supplied by Colliers
