A split-risk investment opportunity in Milford on Auckland’s North Shore, which includes a national-brand commercial tenant, will appeal to a range of prospective purchasers looking to acquire a premier asset that will provide long-term passive income.
31 Shakespeare Road in Milford is a fully consented and well-maintained building featuring a 774sq m vet clinic and a modern 106sq m three-bedroom apartment that also has two bathrooms on a freehold 1,146sq m site. The property includes nine dedicated car parks.
Animates Holdings Limited, New Zealand’s leading pet retail store, are the veterinary tenant, and the clinic has been in operation for nearly 25 years.
The property is only a three-minute walk to the Milford Shops and a short 15-minute stroll to Milford Beach, while Auckland’s CBD can be reached in approximately 12 minutes during off-peak traffic.
Colliers Directors Shoneet Chand and Matt Prentice have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 3 November, unless sold prior.
As an essential service provider, the vet clinic remains fully operational during all Covid-19 Alert Levels and Animates recently began a four-year lease that returns $108,680 net annual rent per annum plus GST and operating expenses.
The lease includes three further rights of renewal for three years each providing a final expiry of April 2034. Market rent reviews capped at 5 per cent will take place on the renewal dates and CPI rent reviews are scheduled for every two years. If a CPI review falls on the market review date, then the market review applies.
The apartment features 96sq m of floor area and a 10sq m deck and will be settled as vacant possession. An independent market appraisal in March estimated the rent to be $43,940 per annum, which is $845 per week.
Chand, Director of Investment Sales at Colliers, says this property shapes as a highly attractive purchasing opportunity given the strong tenant covenant as part of a multi-use building.
“Rarely are properties of this calibre offered to the market in Milford. This is a premier split-risk investment opportunity with a blue-chip tenant that is committed to a long-term lease with favourable terms,” Chand says.
“The building, which offers tremendous functionality for the veterinary clinic, is largely concrete in construction and a new roof was installed in 2018. Seven car parks are assigned to the vet clinic.
“The first-floor apartment was tastefully renovated in 2016 and features well-proportioned bedrooms and high-quality bathrooms. The apartment also includes two car parks, which offers another level of convenience for the future occupiers.”
Prentice, Director of Sales and Leasing at Colliers, says the property is strategically positioned with a range of nearby amenities.
“North Shore Hospital, Takapuna, and the Wairau Valley commercial precincts are readily accessible from Milford, while the property is zoned for a number of local schools, including Milford School, which is only 50m away,” Prentice says.
“There’s multiple supermarkets, eateries, pharmacies and The Warehouse, among a wide range of other shopping options that are all within walking distance.
“Shakespeare Road runs off East Coast Road, a major arterial route that links to the East Coast Bays area, while the property offers excellent proximity to State Highway 1. There’s also a number of bus stops nearby.”
The property is zoned as Business - Light Industry Zone under the Auckland Unitary Plan. This designation anticipates industrial activities that do not generate objectionable odour, dust, or noise. This includes manufacturing, production, logistics, storage, transport, and distribution activities.