A mix of ground lessor and freehold properties across more than 9400sq m of prime Epsom and Remuera land, returning approximately $1.43 million annually, makes for an unmissable collection, JLL agents say.
They are bringing to the market what is described as "one of the country’s most compelling investment opportunities."
The seven assets are in the sought-after Epsom/Remuera suburbs, providing significant upside and long-term, stable cashflow.
Totalling 9,487sq m of land area, the sites at 14, 16 and 18 St Marks Rd, 3, 7, and 19 Mauranui Ave, and 139 Remuera Rd offer a combination of development and long-term rental income prospects.
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They currently offer a strong net passing annual income of over $1.425 million and a weighted average lease expiry (WALE) of approximately 5 years, with the majority being 21-year perpetually renewable ground leases.
These legacy assets are all zoned Business-Mixed Use, and are an enviable package rarely seen in the competitive Auckland market.
“This opportunity to acquire seven assets of this quality, in the sought-after and constantly growing Remuera/Epsom precinct, is once-in-a-lifetime,” says Jonathan Ogg, Head of Capital Markets for JLL New Zealand.
“Developers and investors with an eye on the future will recognise the potential of this collection, being just a stone’s throw from Newmarket’s shops and entertainment outlets, convenient access to State Highway 1 and close proximity to train stations
Nearby sites at 3 and 7 Mauranui Ave are both tenanted by a multinational operator, Sime Darby Berhad, a Malaysian conglomerate that operates globally and market sectors. In New Zealand, Sime Darby operates Continental Car Services, with 7 Mauranui Ave currently in use as a single-level workshop and tyre centre.
The two-storey office block at 3 Mauranui Ave is utilised as the New Zealand head office for Sime Darby.
Both sites are rectangular and level, and have long-term covenants in place with a 21-year lease period, with next right of renewal in September 2026.
At nearby 19 Mauranui Ave, the options are abundant. Covering 921sq m, the two-level building is currently occupied by Revolve Asbestos Solutions Ltd. The new owner has the potential to have unencumbered access to the land just nine months after 31 August, with all improvements to remain and transfer to the new owner.
Add-value investors or developers will recognise the possibilities inherent in this opportunity.
“The combination of net annual income and strong tenants at 3 and 7 Mauranui Ave, plus the development options at nearby 19 Mauranui Ave, make for an enviable parcel of assets,” says Head of Auckland Metropolitan Investment Sales at JLL New Zealand, Jonathan Lynch.
“These assets are currently returning over $660,000 per annum, plus GST and operating expenses. The incoming owner will benefit from sound annual returns until they are ready to make their own mark on the sites and develop, with multiple options available to pursue under the Mixed-Use zoning.”
In the immediate vicinity lies 139 Remuera Rd in Remuera’s famed Medical Mile. Situated on the high-profile corner site of Remuera Rd and Dilworth Ave, this property is leased to an established medical tenant returning $142,000 a year plus GST and operating expenses.
Properties in Remuera’s medical precinct are tightly held. Offering 1700sq m, the 21-year perpetually renewable ground lease at this address is an important asset that could secure significant long-term returns.
Neighbouring sites at 14, 16 and 18 St Marks Rd make up a rarely available package that offers a diverse range of options across the three addresses.
The corner site at 14 St Marks Road offers significant exposure to the existing tenant, Advantage Tyres, which operates out of a 725sq m workshop atop 1647sq m of land.
Returning over $200,000 in net annual income and with final lease expiry in March 2026, the future-thinking developer or investor can plan their next step on this attractive site with sound cashflow and high profile.
Further opportunity is created by 3 Mauranui Ave adjoining the block containing these three assets.
Next door at 16 St Marks Rd, a long-term tenant operates a 21-year perpetually renewable ground lease with next expiry in May 2038.
Returning over $277,000 a year, plus GST and operating expenses, this 1232sq m asset offers consistent cashflow as a legacy investment.
The third address in this neighbourhood collection is another identical land parcel, on 1232sq m, with buildings and improvements totalling 868sq m. Long-term covenants at 18 St Marks Rd are shared by a motor group occupying one half with the balance split between an accounting firm and a health specialist. With the next rent review and renewal in May 2033, cashflow of $135,000 a year plus GST and operating expenses is secured for the years ahead.
Senior Broker at JLL New Zealand, Kevin Reardon, suggests the existing covenants, significant combined cashflow and imminent development potential makes for a desirable investment.
“With combined net annual income over $621,000 across these three sites, plus the potential to develop or reconfigure 14 St Marks Rd when the current lease expires in 2026, there is significant upside in this package,” says Reardon.
“Flexible zoning opens the door for a diverse range of options across all three sites. The inherent advantage of the location on St Marks Road, close to State Highway 1 access, Remuera’s Medical Mile, and the sought-after Greenlane precinct, makes 14, 16, and 18 St Marks Road an obvious choice for the astute investor or developer.”
Ogg says this collection of properties is a mix of bottom-drawer, set-and-forget ground lessors’ (freehold) interests with strong lessee covenants and freehold development opportunities on some of the most sought-after addresses in central Auckland.
“The chance to secure a handful of these sites at once, let alone seven in one package, rarely comes along and this is the first time that these assets have been available to purchase in over a century.
The freehold sites at 14 St Marks Rd and 19 Mauranui Ave and ground lessors' interests at 139 Remuera Rd and 16 and 18 St Marks Rd are being sold by JLL via tender closing 4pm, Tuesday September 17.
- Supplied by JLL
