A bulk retail property on a high-profile corner site in the West Auckland suburb of New Lynn is for sale. It will draw the interest of buyers looking for a passive investment with a steady rental stream and strong tenant covenant.
34 Clark Street, New Lynn has a 601sq m building that is home to blue-chip tenant Animates. The highly visible corner site spans 1,059sq m and the freehold property is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
Animates’ current 13-year lease term began in August 2016 and they have two five-year rights of renewal available leading to a final expiry of 23 August 2039 if they are exercised.
The lease agreement provides $216,315 plus GST and operating expenses in net annual rental income. There are also annual CPI reviews, except on renewal dates, that are capped at 3.5 per cent and market rent reviews on renewal of the lease.
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The property has 13 dedicated car parks and sits on a prominent corner at the intersection of Clark Street and Portage Road in New Lynn.
The site benefits from its proximity to main arterial routes Great North Road, Ash Street, and Blockhouse Bay Road. The Northwestern Motorway on-ramps are also a short drive away.
New Lynn is located approximately 13km to the south-west of the Auckland CBD and enjoys good public transport services with buses and trains running at regular intervals.
Colliers Directors Matt Prentice and Shoneet Chand have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 20 November, unless sold prior.
The building was extensively refurbished in 2016 and offers storage, office, and amenities space to support the retail area. The building has a 100 per cent NBS rating.
Prentice, Director of Sales and Leasing at Colliers, says there are a number of compelling factors that will be appealing to prospective purchasers.
“Animates is New Zealand’s leading pet retail store and its owners include the ASX-listed firm Greencross and the NZX-listed Ebos Group, providing buyers with a property that has a strong tenant covenant,” Prentice says.
“The current tenant has a proven trading history at the location and a long-term lease in place. The lease terms offer considerable room for future rental growth and this will be highly attractive to buyers seeking a bottom-drawer investment opportunity.”
Chand, Director of Investment Sales at Colliers, says the property benefits from its corner location that offers excellent street exposure to passing traffic.
“With dual access points this property provides convenience for customers and is strategically located among a mixture of strip retail stores and bulk retail operators, including household names Mitre10 Mega, PlaceMakers, and New World,” Chand says.
“The LynnMall Shopping Centre, which has been enhanced through upgrades in recent years, is also nearby, giving shoppers further retail offerings and adds to the regeneration of New Lynn as the area has benefited from improved public transport options and numerous residential developments.
“This property represents a compelling investment opportunity and we encourage all interested parties to reach out to us to discuss their options.”
- Supplied by Colliers
