A high-profile investment opportunity in the heart of Auckland’s southern growth hub has become available and provides long-term income from two high-quality tenants as well as favourable zoning for future upside.
Located at 12 Lakewood Court, the property is in the heart of Manukau and surrounded by amenity including Rainbow’s End, Westfield Manukau and the train station, all within easy walking distance.
Colliers have been exclusively appointed to sell the property by auction at 1pm Wednesday 28 April 2021 unless sold prior.
“On offer is a substantial 5,682 sqm freehold site with two tenanted buildings that are returning $732,000 plus GST per annum combined.
“The buildings are tenanted by Raylands Motel and a Valentines restaurant, both of which are well-established with strong trading history and favourable lease terms.”
Rayland Motel has been on the site for over two decades, while the Valentines moved from the neighbouring site in 2013.
Accounting for some 80 per cent of the total income, the lease to Rayland Motels is for 12 years with two six-year rights of renewal and a final expiry date of 2042 that incorporates regular rent reviews to CPI.
JSR Enterprises, trading as a Valentines restaurant, make up the remaining 20 per cent of the income with similar lease terms and a final expiry date of 2031.
Constructed in 1998, the motel facility is two-storeys and has an A-grade seismic rating to 95 per cent of New Build Standard.
The motel comprises 40 accommodation suites at competitive prices including studios and family units to suit a range of occupants.
The premises have been kept to a high standard with well-appointed rooms that all include amenity such as Sky TV and kitchenettes.
The restaurant occupies a regular shaped single level building with a tidy internal fit out comprising predominantly open plan dining, function, and buffet space as well as back of house facilities including a kitchen, storeroom, and bathrooms.
The two buildings are situated around the perimeter of the site, with the core providing ample car parking totalling 121 spaces for use by both occupiers and their customers.
The site’s topography is relatively flat with the motel sitting slightly elevated and sloping down towards the road. It’s also fully fenced with gate-controlled access from Lakewood Court.
Dual access from both Redoubt Road and Lakewood Court provides good traffic flow and abundant access points.
Barnes says that the location cannot be beaten for its growth potential.
“Manukau’s growth is evident given the substantial developments already underway including a new neighbourhood of up to 400 homes at Barrowcliffe Place, 10,800 sqm of new commercial development at 57 Manukau Station Road, and proposed residential development at 2 Davies Avenue, to name a few.
“Located just over 20 kms from Auckland’s CBD and 10 kms from Auckland Airport, Manukau has been selected as one of three centres outside of the CBD that Auckland Council has prioritised through to 2050.
“Project Manukau, being led by Council’s Panuku Development encompasses over 600 hectares of land in central Manukau and Wiri and is set to transform the area into a more vibrant and connected Auckland.
“Significant infrastructure upgrades are already well underway with a new integrated rail and bus station, the opening of Manukau Institute of Technology’s new trade learning centre and the upgrade of Putney Way that will serve as the main street.
“This property is superbly located to benefit from the ongoing transformation of the surrounding area.”
Gibb says that while there is still plenty of term remaining in the leases, favourable zoning and an existing resource consent adds significant value for investors who may wish to redevelop in the future.
“The site has approved resource consent for a 16-level building comprising 94 residential apartments and 76 serviced apartments.
“The consented design includes two basement floors of car parking, function space and a bar lounge on the ground floor, as well as a gym and pool on the first floor.
“The abundance of amenity in the area, combined with the size, topography and generous zoning make it an ideal site for mixed-use redevelopment down the track.“In the meantime, with a long WALT of 8.2 years by income and the benefit of the diversity in income from the two tenants, all investors should consider adding this ‘bottom drawer’ investment to their portfolio.”