Split-risk investment with new leases on Ellerslie’s main retail strip

Splitrisk investment with new leases on Ellerslies main retail strip

A fully leased, split-risk investment property in the heart of Ellerslie is for sale by auction, presenting an opportunity to secure diversified income from a strategic freehold asset in one of Auckland’s most desirable suburbs.

Centrally located on the main commercial strip of Ellerslie Village, the property at 129 Main Highway comprises two buildings on a 458sq m site with Business Town Centre zoning.

It is occupied five tenants, three on newly signed leases, with a weighted average lease term of four years. The leases return $126,493 in net annual passing income.

Colliers International’s Auckland Investment Sales team has been exclusively appointed to market the property for sale by auction at 11am on Wednesday 2 December, unless it sells earlier.

Gareth Fraser, Auckland Director of Investment Sales at Colliers, says the property boasts many desirable attributes that are keenly sought in the current market.

“This is an outstanding opportunity to acquire a diversified freehold investment with split-risk income, a favourable weighted average lease term and a very strong tenant mix.

“The property is prominently positioned at the centre of Ellerslie Village, with excellent profile to the bustling main retail strip.

“It draws on a large catchment that includes residents of the affluent suburb of Ellerslie and office workers from the surrounding business parks.

“The locale offers a superb mix of amenity and connectivity, with regular train services at the nearby Ellerslie Train Station, superb proximity to the Southern Motorway, and an abundance of shops, cafes and restaurants and good local schools.

“The property’s appeal is bolstered by the underlying value of the land, which is generously zoned to allow for future mixed-use redevelopment of up to 13m in height.

“This premium offering is sure to appeal to investors or land bankers seeking passive split-risk income now, with the ability to add substantial value over the longer term.”

Charlie Oscroft, Investment Sales Director at Colliers, says the property’s two buildings provide a net lettable area of 320sq m.

“Fronting the main retail strip is a two-storey building with two ground floor retail tenancies, which are separated by a stairwell providing access to two first floor commercial tenancies.

“The building was constructed in 1958 and has benefited from high-quality internal improvements since.

“To the rear is an older single-storey building that has also been improved since construction. Access is via a driveway to the eastern boundary that also provides access to the tenant car parks.”

Logan Roach, Investment Sales Broker at Colliers, says both ground floor retail tenancies are on new leases commencing in July and August this year.

“Inspire Real Estate, which recently relocated from nearby Marua Road, is a licensed real estate agency. It is signed to a new five-year lease with a right of renewal for a further four years.

“Temptation Indian Cuisine specialises in authentic and traditional Halal Indian food, with takeaways and deliveries to the surrounding residential catchment. It is signed to a new six-year lease with a six-year right of renewal.”

Roach says the first floor is divided into an office and a retail unit that is currently fitted out as a health spa.

“The office tenant is Mackenzie Properties, which specialises in land subdivision and commercial buildings in the South Island’s Mackenzie Country.

“The retail tenant is Revive Spa and Thai Massage, which offers a range of relaxing health treatments including hot stone massages.

“Both tenants commenced their leases in July 2019, with final expiries in and 2025 and 2027 respectively.”

The rear tenancy is occupied by Epsom Funeral Home, which was established in 1979 and services all areas of Auckland.

The family-owned New Zealand company is on a new three-year lease from September, with two rights of renewal extending final expiry to 2029.


Related Experts

Gareth Fraser

Auckland Director - Investment Sales

Auckland CBD

Gareth leads Colliers International's Investment Sales team. The team operates across the entire Auckland market from four strategic locations; CBD (including city fringe), South Auckland (based in Highbrook), West Auckland (based in North West Shopping Centre) and North Shore (based in Takapuna).

This is a large team of brokers and support staff focussed on providing solutions to owners, investors, developers, owner-occupiers and tenants. It features a specialised site sales team focussed on residential land and development opportunites. Investment Sales also includes the syndication division, offerring proportionate ownership opportunities to investors on behalf of clients.

Gareth is also on the Executive Team for Colliers in New Zealand.

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Charlie Oscroft

Director

Auckland CBD

With an extensive background in many real estate markets spanning London, Hong Kong, Brisbane, Perth and Auckland, I bring a wealth of experience to Colliers International in client management and delivering 5 star customer service.

Charlie specializes  in both the sale of commercial, retail and industrial property as well as Syndication sell downs on behalf of clients. He is one of the leading sales brokers promoting the Auction Business.

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Logan Roach

Broker

Auckland CBD

Logan forms part of the Auckland CBD Investment Sales Team at Colliers International. Prior to Joining Colliers, Logan completed a Bachelor of Commerce from the University of Auckland swiftly moving into the role of Business Development Manager for New Zealand’s largest specialised waste & recycling equipment supplier. Utilising the skills obtained from this role, Logan now applies this knowledge to his strong interest of commercial real estate.

Logan places emphasis on creating and developing long lasting relationships by putting the needs of his clients first, to achieve the best possible results. He specialises in the Panmure, Glen Innes, Mt Wellington and Eastern Suburbs areas.

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