The land and buildings of a multi-tenanted property in the popular Auckland suburb of Ellerslie are being offered to the market for sale and will pique the interest of buyers looking to acquire an asset with a passive income and strong tenant covenant.
171 Main Highway, Ellerslie has 891sq m of total net lettable area, spread across five tenancies on a 2,303sq m site.
The property is zoned Business – Mixed Use Zone and Residential – Single House Zone under the Auckland Unitary Plan.
Anchored by a BP service station, the total annual rental income from the property is $306,800 plus GST and operating expenses.
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The weighted average lease term is 3.58 years.
Benefitting from significant road exposure, this highly visible corner property is strategically located near the Ellerslie village and is a short walk from a range of food and beverage offerings.
The subject site is only nine minutes from Auckland CBD, while the motorway network is easily reached via a nearby interchange.
Ellerslie train station is in walking distance and the area is well served by multiple bus routes.
Colliers Brokers Logan Roach and David Burley have been exclusively appointed to market the property for sale via auction to be held at Colliers, Level 23, HSBC Tower, 188 Quay Street, Auckland at 11am on Wednesday 29 May, unless sold prior.
Anchor tenant BP occupies 135sq m of the property and has three fuelling islands.
Their lease runs until January 2029 and there is also one further right of renewal for five years.
Mechanics Ellerslie Automotive occupies two units at the property spanning 566sq m of floorspace and recently began a new three-year lease that runs until 2027.
There is one further right of renewal for three years leading to a final expiry of 2030.
Commercial kitchen operator iCook occupies a 78sq m unit at the property and are in the middle of a five-year lease.
A retail tenancy is in Unit B, which spans 111sq m, and their lease runs until 2026 with one further right of renewal for three years.
All the leases include some form of rent review in the coming years, with a majority being based on market rates.
Roach, Investment Sales Broker at Colliers, says there are strong investment fundamentals attached to this property that will catch the eye of discerning buyers.
“With a complementary tenancy mix, buyers searching for a split-risk investment will recognise the opportunity on offer here,” Roach says.
“With a long-term lease in place to an internationally known fuel brand there is a strong tenant covenant. With future rental reviews in place there is potential to grow the income stream from the property.
“The supporting tenancies such as Ellerslie Automotive are well-established local firms and the weighted average lease term of 3.58 years is another drawcard.”
Burley, Auckland Director of Investment Sales at Colliers, says Ellerslie is an attractive suburb for prospective purchasers due to its affluent catchment of residents and proximity to the CBD and transport links.
“The area blends commercial and industrial properties alongside its busy shopping village that provides an inviting mix of hospitality options,” Burley says.
“We have begun to see passive investors becoming more active in the property market recently and this offering is something that is sure to catch their eye given its highly coveted mixture of a strong anchor tenant and split-risk investment profile in a popular location.”
- Supplied by Colliers
