A high-profile commercial premises occupied by a multinational pet supplies retailer in the upscale Auckland suburb of Ponsonby is generating strong purchaser interest, thanks to an attractive combination of tenant covenant, lease term and development upside.
The 986sqm (more or less) freehold corner site at 9 Rose Road is in a prime position just metres from main arterial Ponsonby Road, which features a high proportion of upscale retail, restaurants and mixed-use developments.
Bayleys Auckland City & Fringe team director Alan Haydock says the property is particularly attractive to investors in the current market given its credentials as a performing income generator with preferable development fundamentals.
“Well-located properties in high growth areas, with strong lease covenants and the ability to generate ongoing cashflow continue to perform well, as investors seek low-risk assets which offer a hedge against inflation.”
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“Developers are also circling for opportunities, with the strategic location, just steps from desirable Ponsonby Road, and intensive zoning an attractive prospect for those with an eye to the future,” he adds.
Haydock is marketing the Rose Road property for sale with Bayleys Auckland City & Fringe team colleague Damien Bullick.
The property is offered to the market by Deadline Private Treaty, closing at 4:00 pm on Tuesday, 7th March 2023 (unless sold prior).
Comprising a double-stud height commercial premises measuring approximately 742sq m (more or less) including a partial mezzanine, the property is occupied as a retail store and offices with on-grade parking for 13 vehicles.
Multinational company Petstock occupies the premises on a recently renewed six-year lease term to June 2028.
The lease provides for two-yearly rent reviews and benefits from a redevelopment clause in the landlord’s favour.
Petstock is a pet food, accessories and services retailer founded in Australia in 2002. They currently have 276 retail stores, 162 grooming stations, 65 veterinary clinics and more than 3,000 staff across Australia and New Zealand.
Currently, the property returns an annual net rent of $339,500 plus GST.
Bayleys Auckland City & Fringe team associate director Damien Bullick says that while the property in its current form is undeniably a trophy asset, it has the dual benefit of preferable Business – Town Centre zoning, which allows for intensive future development to 18m.
“Situated in the heart of Ponsonby – one of Auckland’s premier shopping and dining precincts – the property benefits from convenient access to transport links and amenities, including the nearby Countdown Supermarket, Ponsonby Central and the newly completed Silky Otter Cinemas.
“This location is also just a short walk from Auckland’s Central Business District, lending itself to mixed-use development that would maximise site efficiency.”
“The location is second-to-none and positioned to benefit from an increasing focus on local commercial activities, as the rise of suburban centres post-pandemic continues to underpin robust demand from commercial, retail and residential occupiers.”
On the other side of the ledger, he says that large-format retail has emerged as a popular investment category, as a lack of available options in premium locations, like Ponsonby, creates competition amongst owner-occupiers and tenants.
“Whether considering the property as a bottom drawer trophy investment, development opportunity or long-term land-bank, the Rose Road asset is a multi-dimensional, add-value offering, underpinned by a tightly-held and desirable location,” Bullick adds.
- Article supplied by Bayleys
