Income from a Papakura shopping centre could potentially be increased by more than $80,000 a year if a new owner repositions the six retail outlets.
Half of The Selwyn Centre at 4-6 Averill Street is being sold by owner Citymed Health Care, with part of the property vacant after plans for a doctors’ surgery faltered.
Colliers International investment sales brokers Tony Allsop and Charlie Oscroft, who are marketing the property, say with a bit of rejigging The Selwyn Centre could be a retail gem, providing a good level of passive income to an astute investor.
“It returns just over $371,000 a year but this could be lifted to more than $450,000 with some judicious planning,” says Allsop.
Citymed Health Care bought half of The Selwyn Centre three years ago after the previous owner, Symphony Group, carried out a complete conversion of the former bulk retail property and divided it into smaller shops.
Citymed, a passive property investor, is selling its half of The Selwyn Centre because it is eyeing up other buying opportunities to better diversify its portfolio. The rest of the shopping centre is unit titled and not for sale.
The shopping centre sits on one title of 3124 sq m in an established Papakura retail patch. It was built in the 1970s and extended in the late 1980s. The six tenancies cover a total of 2,144 sq m.
National retailer Radius Health Group anchors the centre with a 1024 sq m of space, which is used by a sports rehabilitation physiotherapy business. Radius also rents 370 sq m of overflow space and its lease over the whole area runs until 2016.
The health group had plans to set up a medical centre but it has been unable to attract doctors, a problem it is not alone in facing.
Other tenants include Meadowbank Optical in 106 sq m, TAB in 175 sq m, Wild Orchid Thai Restaurant in 110 sq m and Graham Goulter Dental Laboratories in 108 sq m. The TAB has recently renewed its lease with a number of extensions.
Oscroft says a new owner could alter the sizes of the tenancies and make one large or two smaller shops in the body of the property. “There are a number of different options, depending on how flexible the existing tenants are.
He says it is also possible to unit title the revamped premises so they could be sold down.”Some of the tenants have already expressed interest in buying their premises on a unit title.”
Shoppers’ parking is on the roof of the centre and has room for 103 vehicles. Oscroft says there are licences in place to the Papakura District Council ensuring public use of the parking area in return for access across the adjoining council car park. The property is within walking distance of Papakura’s main railway station.
“There is plenty of potential to add value to the centre, particularly as part of its fronts on to Great South Road,” says Oscroft. “The other section faces Railway and Averill Streets and is opposite the recently sold bulk retail development anchored by Noel Leeming.
“Papakura’s CBD is the traditional shopping precinct and the council is active in protecting it, particularly as the regional growth strategy predicts the population will grow by 50,000 people over the next three to four decades. The council is undertaking District Plan changes for intensification in and around the CBD to make room for another 5000 people.”
Under the council’s plans greenfield growth areas at Hingaia and Takanini will provide for at least another 10,000 to 20,000 people.
Allsop says as nearly 20% of Papakura’s population is under 15, growth and expansion of retail in Papakura is inevitable.
Half of the Selwyn Centre is being sold by private treaty closing on November 20.
Print this article or Email to a friend