A prominent retail site in the West Auckland suburb of Henderson presents buyers with a premier split-risk investment opportunity that also offers substantial long-term growth potential due to its favourable zoning.
433-435 Great North Road, Henderson is a 2039sq m freehold site spread across two titles with two separate retail buildings. The property is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan.
Unit A, which measures 339sq m, is leased by the Red Cross, while St John leases the 416sq m Unit B. The combined annual rental income from both tenants is $147,993 plus GST and operating expenses.
These immaculately presented and highly visible buildings, which also include ample on-site car parking, offer 40m of street frontage to Great North Road, one of Henderson’s main arterial routes.
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Colliers Directors Matt Prentice, Josh Coburn, and Shoneet Chand have been exclusively appointed to market the property for sale by auction to be held at Colliers North Shore, Level 1, 129 Hurstmere Road, Takapuna, Auckland at 11am on Wednesday 15 December, unless sold prior.
Red Cross began a new three-year lease on 1 September that expires on 31 August 2024 and provides one further right of renewal for three years.
The lease returns $75,650 plus GST and operating expenses in net annual rental income with a market review on renewal.
St Johns began a two-year lease in October, which expires on 11 October 2023, and has one further right of renewal for two years.
The agreement returns $72,343 plus GST and operating expenses in net annual rental income. A rental review of CPI plus 2 per cent is scheduled to take place on renewal.
Prentice, Director of Sales and Leasing at Colliers, says this offering will be attractive for buyers as a solid bottom drawer investment with plenty of future upside.
“The property offers a strong tenant covenant from national brands that recently renewed their commitment to the site,” Prentice says.
“Located approximately 80m from the intersection of Lincoln Road and Great North Road in West Auckland, the site enjoys excellent traffic exposure to the 27,000 cars that pass on Great North Road each day.
“This well-established commercial location is a short drive from Henderson town centre and less than 10 minutes’ drive from the Northwestern motorway, via either Lincoln Road or Te Atatu Road.”
Coburn, Director of Site Sales at Colliers, says the zoning of the property means there is future potential for development, which is made even more attractive considering the low site coverage of 37 per cent.
“The Business – Metropolitan Centre Zone applies to centres located in different sub-regional catchments of Auckland. The centres are second only to the city centre in overall scale and intensity and act as hubs for high frequency transport within their catchments,” Coburn says.
“The zone provides for a wide range of activities including commercial, leisure, high-density residential, tourist, cultural, community, and civic services, giving the new owner a host of options.”
Chand, Director of Investment Sales at Colliers, says Henderson is well-served by a busy roading network and has strong public transport links.
“Henderson is home to a number of cultural, recreational and educational facilities which makes it an attractive destination for current and future residents and businesses. Some significant establishments located nearby include the Corban Estate Arts Centre, Auckland Film Studios, WestCity Waitakere, The Boundary, West Wave Pool and Leisure Centre, and Henderson High School,” Chand says.
“The area is identified as one of ten metropolitan centres in the Auckland Plan that is a key business and employment hub, and therefore an area that will undergo extensive urban development over the next 30 years.”
- Article supplied by Colliers
