A split-risk retail investment opportunity with multiple income streams and built-in rental growth is for sale in South Auckland, offering an affordable investment proposition in a high-growth area.
The 355sq m commercial building at 105-107 King Street, Pukekohe had refurbishments carried out earlier this year, and occupies a prime 617sq m site with a northerly-facing aspect on the main street of the evolving rural service town.
There are nine car parks accessed off Devon Lane, with rear service access provided to the retail premises, and on-street parking at the King Street frontage.
The property is fully tenanted, and returns net annual income of $105,974.
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Travel company Flight Centre and specialist furniture retailer Concept Living are on varying leases, and four of the car parks are leased to neighbouring businesses.
Flight Centre is six years into an eight-year lease, with one six-year right of renewal, while Concept Living is on a new two-year lease from April 2024 with one further renewal.
Both leases have fixed annual rental growth of three percent, and reviews to market on renewal.
The bathroom and kitchenette facilities to the rear of the Flight Centre tenancy were recently installed, and both stores are presented to a high standard with quality fitout.
The Business -Town Centre zoned King Street property is being marketed by Shane Snijder, Mike Hook and Peter Migounoff of Bayleys, and will be auctioned on Tuesday, 13th August, unless sold prior.
With growth burgeoning in the wider Pukekohe catchment, and significant private and public investment either in place or planned, Snijder says the commercial property in the hub of the town represents good value in the South Auckland market.
"Prospective buyers will recognise the commitment shown in the town by proactive businesses like automotive heavyweights Ebbett Group and Toyota, and agricultural dealership Power Farming, who have all cemented a strong presence in Pukekohe reflecting confidence in the area.
"The addition of Franklin Hospital, and a planned new medical centre for the town supports the community and will underpin population growth."
Pukekohe's current population is around 27,000, with Auckland Council projecting this will grow to over 50,000 people in the next 20 years.
Residential developments of some scale in the broader area are underway at Paerata Rise, Bremner Road, Belmont Estate, with smaller developments at Glenbrook, Waiau Pa and Patumahoe.
NZX-listed Fisher & Paykel Healthcare's recent land acquisition and planned development at Karaka, further underscores the value of commercial property in Pukekohe.
"A strong local economy, population growth, and infrastructural investment will all contribute to a vibrant and well-performing town centre," says Snijder.
"The subject property has enjoyed a sound leasing history and the location works well for the current occupiers, with the 'shop local' philosophy alive and well in Pukekohe."
- Supplied by Bayleys
