Premium investment in Westgate

The largest Bunnings Warehouse in New Zealand, that was purpose-built only a few years ago and sits in one of Auckland’s fastest growing regions, is being presented to the market for sale.

Located at 21-33 Fred Taylor Drive, Westgate, the building has 16,001sq m of gross lettable area on a 20,724sq m freehold site.

The significant landholding is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.

Bunnings, a wholly owned subsidiary of Wesfarmers, one of Australia’s largest listed companies with a market cap of over AUD$36.6 billion, began a 12-year lease in 2020 that offers eight rights of renewal for six years each, leading to a final expiry in 2080.

Their lease agreement will provide $2,869,914 plus GST per annum from December. There are annual 2.5 per cent increases during its initial 12-year lease term, while future annual increases and market reviews are in place for subsequent terms.

Surrounded by a host of national-brand tenants, the property is part of a prominent commercial development, which includes West Auckland’s major retail and commercial hub and occupies a pivotal position in the heart of Westgate.

As an emerging metropolitan centre, it is set to become the primary destination for the surrounding community, offering a comprehensive range of amenities, retail outlets, food and beverage establishments, and entertainment options to service the entire catchment.

Currently, access to the surrounding area is via Brigham Creek Road and Fred Taylor Drive, Trig Road and Hobsonville Road, or via State Highway 18. Once completed, this area of Westgate is projected to cover an expansive 56ha and is expected to generate approximately 10,000 new jobs and provide housing for around 4,000 residents.

Colliers Directors Blair Peterken, Josh Coburn, and Shoneet Chand have been exclusively appointed to market the property for sale via an international expression of interest campaign with the deadline for offers closing at 4pm on Wednesday 6 December, unless sold prior.

The main retail area spans 9,278sq m, while there is a 1,876sq m timber yard, 1,093sq m building materials yard, and a 1,133sq m crop cover nursery. Travelators provide access to the entrance from the car park where there is 327 parking spaces, including eight mobility parks.

Peterken, Director of Capital Markets at Colliers, says Bunnings represents a blue-chip tenant that will provide strong appeal for investors.

“This is an outstanding passive investment opportunity given the longevity of the lease that indicates Bunnings’ commitment to this location,” Peterken says.

“With built-in future rental growth there are favourable lease terms for buyers and because the property was only recently constructed it shapes as a low maintenance asset that would be a jewel in the crown of any investor’s portfolio.”

Coburn, Director of Capital Markets and Site Sales at Colliers, says the highly visible property has been expertly constructed and enjoys a prominent position on a corner site.

“The car parking accessibility means this is an incredibly user-friendly shopping location and with so many big-name operators in the surrounding area like Pak’nSave, The Warehouse, and the NorthWest Shopping Centre, there’s multiple reasons to shop here,” Coburn says.

“The construction of New Zealand’s first Costco, which is only a few minutes away, is another major vote of confidence for the surrounding area.”

Adjacent to the property, Universal Homes are actively developing 1,400 homes with additional parks and walkways, while 1km north there is a major development from Hugh Green Group that will cover approximately 256ha and include up to 8,000 homes.

Directly north, the Sonn Group is embarking on the development of their 27ha site, where they plan to construct 1,800 terraced homes and apartments.

Chand, Director of Investment Sales at Colliers, says the growth of this part of West Auckland has provided considerable residential and commercial development.

“Westgate has benefited from the extension of the Upper Harbour Highway, the widening of the Northwestern Motorway, and the completion of the Waterview Tunnel,” Chand says.

“Auckland’s western precinct, centred around Westgate, has transformed with suburbs such as Hobsonville Point, Whenuapai, and Kumeu all growing rapidly. Established surrounding suburbs such as Massey, West Harbour, and Royal Heights all utilise Westgate for their shopping needs and the future development of Redhills will only drive more people to Westgate.”

Article supplied by Colliers