A strategically located property with a blue-chip anchor tenant in the rapidly growing South Auckland suburb of Takanini is being offered to the market for sale.
86 Kauri Heart Avenue, Takanini is home to a Gull service station with complementary retail tenancies, including a grocery store, laundromat, pizza place, and an Indian takeaway outlet that all sit on a 3,044sq m freehold site.
All tenants have long-term leases in place that run until the 2040s and 2050s if the rights of renewal are taken up. There are also annual rental increases in place as well as regular market reviews on some of the agreements. The total net annual rental income from the property is $430,073 plus GST.
The property is zoned Business – Local Centre Zone under the Auckland Unitary Plan.
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Takanini is an area of Auckland that has experienced significant development during the past decade. It is part of the Papakura Local Board where the population grew 18.1 per cent from 2016 to 2021, as per data from Infometrics, compared to a 5.6 per cent increase across the wider Auckland region.
The subject site is approximately 30km south of the Auckland CBD and can be reached in 45 minutes during off-peak traffic conditions.
Colliers Brokers Shoneet Chand, Matt Prentice, and Ronal Prasad have been exclusively appointed to market the property for sale via negotiation.
Gull occupies 265sq m of space plus the service station forecourt. Their 10-year lease began in June 2022 and has two further five-year rights of renewal.
The grocery store at the property leases 221sq m of space on a 10-year term that runs until June 2033 and has four five-year rights of renewal available.
The laundromat, Beach Pizza Takanini, and Indian takeaway store Tim Hot Eatery all began eight-year leases in July 2023 with varying renewal options available in future.
Chand, Director of Investment Sales at Colliers, says the strength of the tenant covenant will draw the attention of prospective purchasers.
“Service stations have long been a sought-after asset class due to the continued demand for fuel and with complementary tenancies at this property it shapes as a compelling passive investment opportunity,” Chand says.
“The favourable lease terms mean there is continued rental growth and all of the leases include annual increases of at least 2 per cent.”
Prentice, Director of Sales and Leasing at Colliers, says the location of the property means it benefits from significant exposure to the high volume of passing traffic.
“Occupying a prominent corner site, there are multiple entry points for customers, providing optimum convenience,” Prentice says.
“The strategic location of the property means it is surrounded by a number of housing developments, while the vacant land across the road is owned by Foodstuffs and believed to be consented for a supermarket.”
Prasad, Investment Sales Broker at Colliers, says Takanini has undergone extensive commercial expansion to align with the notable population growth, which has more than doubled in the past 10 years and now numbers more than 20,000 people.
“A hub of economic activity has emerged along Great South Road, which is a short drive from the subject property with further development at the nearby Walters Road,” Prasad says.
“This property has outstanding investment fundamentals, namely a strong anchor tenant alongside supplementary retailers that have long-term leases, all in a location where there is growing demand for commercial services. We encourage all interested parties to contact us immediately to explore their options.”
- Article supplied by Colliers
