A highly visible property in Manukau with excellent street exposure and a long-term tenant in place will attract a wide range of buyers looking to secure a premier passive investment that also offers future growth potential.
635 Great South Road, Manukau, is home to the Motor Brothers car yard and the property includes a 190sq m office and workshop building that sits on a 2600sq m site.
The property provides $280,000 plus GST in net annual rental income.
Set among a mix of retail, office, and accommodation buildings, this area of Great South Road is a long-established car retailing precinct that enjoys favourable proximity to the busy intersection of Great South Road and Cavendish Drive, which is just a stone’s throw from the Te Irirangi Drive motorway on-ramps.
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The recent extensions to State Highway 20 give access to the wider region, with travel times to Auckland Airport being considerably shortened.
The property is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan.
Colliers Directors Paul Higgins and Matthew Barnes have been exclusively appointed to market the property for sale via auction that will be held at Level 1, Colliers House, 52 Highbrook Drive, East Tamaki at 11am on Wednesday 23 March, unless sold prior.
The site is Manukau’s longest-standing car yard.
The existing two-level building on the property was constructed in the 1980s and provides only 7 per cent site coverage, allowing for future growth.
The cobbled car yard has dual access with driveways off Great South Road, which offers convenience for tenants and customers alike.
The current tenants have recently signed a new five-year lease that begins on 1 April and offers two further rights of renewal for two years each leading to a final expiry of 21 March 2031.
Rent reviews are in place, providing a fixed increase of 2 per cent per annum.
Higgins, Director of Industrial at Colliers, says the property offers a strong tenant covenant, which will be appealing to prospective purchasers.
“The property provides the new owner with a stable tenant signed to a long-term lease that includes favourable terms through the annual fixed rental increases,” Higgins says.
“This a is a high-profile site that has 29m of road frontage meaning it experiences a vast amount of visibility along one of South Auckland’s busiest arterial routes.”
Higgins says the true value may lie in the long-term potential this location offers given the mixture of favourable zoning and low site coverage.
“The Business – Metropolitan Centre Zone applies to centres located in different subregional catchments of Auckland. These centres are second only to the city centre in overall scale and intensity and act as focal points for community interaction and commercial growth and development and contain hubs serving high frequency transport.
“The zone provides for a wide range of activities, including commercial, leisure, high-density residential, tourist, cultural, community, and civic services meaning the new owner will have significant flexibility if they wish to develop the property in the future.”
Barnes, Director of Investment Sales at Colliers, says there is a notable lack of available land in South Auckland, which is creating an increase in demand.
“Manukau and neighbouring Wiri are becoming the most sought-after industrial and commercial areas in Auckland with many leading companies now choosing to call Manukau their home,” Barnes says.
“An existing mixture of both large format retail, traditional retail, and industrial operators creates an eclectic mix of businesses, offering a wide range of amenities.
“We expect there will be strong interest in this property given the long-term potential on offer.”
- Article supplied by Bayleys
