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Upsized investment opportunity anchored by Papatoetoe McDonald’s

Upsized investment opportunity anchored by Papatoetoe McDonalds

A freehold standalone building anchored by McDonald’s is expected to draw intense interest from commercial property investors as it goes up for sale on a prominent town centre site in South Auckland.

The refurbished single-storey property for sale at 194 Great South Road, Papatoetoe, occupies a high-profile corner location on South Auckland’s major arterial route. Diversity with multiple tenancies including McDonald’s and Westpac Bank generate total net rental income of $330,348 plus outgoings and GST per annum.

Colliers has been exclusively appointed to market 194 Great South Road, Papatoetoe, Auckland for sale by auction at 11am on Wednesday 2 June, unless it is sold prior.

Shoneet Chand, Investment Sales Director at Colliers, says the investment on offer is underpinned by the property’s two long-standing international anchor tenants, McDonald’s and Westpac Bank.

“McDonald’s occupies approximately 328sq m of the property for its restaurant, paying net annual rent of $147,313 plus outgoings and GST on a lease running through to 2027. One ten-year and two further five-year rights of renewal, if taken up, will extend the expiry to 2047,” says Chand.

Another 63sq m of office space is also occupied by McDonald’s, generating $7,072 plus outgoings and GST per annum, on a separate lease that runs through to 2023 with a further four-year right of renewal.

“McDonald’s is a global tenant of the highest quality. The world’s largest restaurant chain by revenue, it serves a million Kiwis a week at 167 restaurants across New Zealand and has 30,000 restaurants globally serving meals to 50 million people daily.”

Westpac Bank leases approximately 272sq m for its Papatoetoe branch, paying net rent of $123,462 plus outgoings and GST per annum on a current lease which runs through to 2024, with two further three-year rights of renewal.

“More than 1.3 million New Zealanders bank with Westpac. The ASX-listed company has operated in this country since 1861 and is well established as one of New Zealand’s ‘Big Four’ banks.”

The remaining area of some 104sq m is leased to Finesse Creations, trading as Apsara, a wholesaler, supplier and retailer of Indian ethnic women’s fashion clothing which pays net annual rent of $52,500 plus outgoings and GST. Its current lease extends until 2023 with three further three-year rights of renewal.

“With such diverse, high-calibre tenants in place on long leases, with built-in rental increases and significant rights of renewal, this property represents an investment proposition of rare quality,” says Chand.

Matt Prentice, Sales and Leasing Director at Colliers, says the approximately 767sq m building at 194 Great South Road sits on some 1,597sq m of freehold land.

“Developed by highly-regarded Argyle Estates and recently fully refurbished, the building is supported with 19 on-site car parks to the rear along with easy access for the busy McDonald’s drive-through.

“With high-visibility corner frontage at the intersection of Great South Road and Charles Street, the property has exposure to 20,000 passing cars daily on South Auckland’s key arterial route.”

Prentice says the property’s location and planning status provide it with considerable long-term development potential.

“The site’s Business – Town Centre zoning supports growth and intensification, in acknowledgement of its location on a main arterial route with good public transport.

“The zone provides for numerous activities, from commercial and residential to leisure, cultural and community uses. The Great South Road site has an allowable building height limit of 18 metres,” says Prentice.

Matthew Barnes, Investment Sales Director at Colliers, says the immediate surroundings include predominantly local retailers, banks, and real estate firms along Great South Road. Just opposite the site for sale is Hunters Plaza, a sub-regional shopping centre anchored by Countdown and Kmart, along with Noel Leeming and 52 other tenancies.

Barnes says the area has been identified as a priority location for regeneration by Auckland Council’s development organisation Panuku.

“Recent progress has been made in revitalising Papatoetoe, including the development of a new supermarket and civic space and an upgrade of the town centre car park.

“South Auckland is experiencing strong residential growth, with significant new development taking place in Papatoetoe, Papakura and Takanini. The property at 194 Great South Road is in a prime position to tap into and benefit from ongoing urban and commercial growth,” says Barnes.


Related Experts

Shoneet Chand

Director

Auckland North

Shoneet has been involved in selling investment property for over 13 years and since 2015 he has been a Director in the Investment Sales Team at Colliers International, specialising in Investment & Development Sales across the wider Auckland region.

Over the past 8 years he has been one of the most successful investment sales brokers in Auckland with a track record of significant sales second to none. He has had considerable experience in dealing with international purchasers and has recently completed several deals with investors out of Asia, Europe and the Middle East. He has been involved in a number of large land sales and portfolio sales, including divestments for well-known brands like Z Energy, The Warehouse & Bunnings.

Shoneet has been the top broker in his market for both 2014 and 2015 while also placing in the top 10 brokers nationwide again for Colliers in 2016. In 2017, Shoneet transacted over $260 million of property and was ranked 2nd in New Zealand.

He was the top broker at Colliers in the 2018 financial year and a finalist for the Commercial & Industrial Salesperson of the Year award, which is judged nationwide across all agencies. In both 2019 & 2020 he was again ranked in the top 5 brokers nationwide for Colliers and was involved in over $300 million & $325 million of sales in each calendar year. 

Over the past six years, he has transacted over $1.5 Billion dollars in sales.

Notable Transactions over $10m include;

  • 2-4 Fred Thomas Drive, Takapuna -   $60,850,000
  • 33 Corinthian Drive, Albany  -   $50,500,000
  • 229 Dairy Flat Highway, Albany -   $33,000,000
  • Todd Industrial Park – Wellington -   $33,000,000
  • 9-11 Corinthian Dr, Albany -  $27,340,000
  • 44 Taharoto Road, Takapuna -   $27,270,000
  • 279-301 Lincoln Rd, Henderson -   $27,000,000
  • 11 Coliseum Drive, Albany -  $26,700,000
  • The Warehouse, Albany -   $26,400,000
  • LEP Childcare Portfolio-   $20,775,000
  • Farro Fresh/ASB Constellation Dr -   $25,500,000
  • Kmart Te Rapa  - $23,750,000
  • 1-11 Parkway Drive -   $21,000,000
  • Noel Leeming, Wairau Park -   $19,000,000
  • 5 The Warehouse Way, Northcote -  $19,000,000
  • Rapid Labels – William Pickering Dr -  $17,300,000
  • 16 Dinning Road, Riverhead -  $16,500,000
  • 35-45 The Strand, Parnell -   $16,100,000
  • 44 Arrenway Drive, Albany -   $15,300,000
  • 151 Lincoln Road, Henderson -    $15,250,000
  • 51 Corinthian Drive, Albany -  $15,150,000
  • 7-21 Kawana Street, Northcote -  $14,998,100
  • 124 Bush Road, North Harbour -   $14,950,000
  • 550 Te Irirangi Drive, Botany -   $14,200,000
  • PlaceMakers, Albany -    $14,000,000
  • 24 Oteha Valley Rd Extn, Albany -    $13,300,000
  • 217-227 Archers Rd, Wairau Valley -   $13,250,000
  • 44 Arrenway Drive, Mairangi Bay -  $13,117,116
  • 6 Canaveral Drive, Mairangi Bay -   $13,000,000
  • 119-121 Onewa Road -   $12,750,000
  • 3 Monahan Road, Mt Wellington -  $12,680,000
  • 155 Wairau Road, Wairau Valley -   $11,500,000
  • 13 William Pickering Drive, Albany -  $11,400,000
  • 14-18 Lovell Court, Albany -  $10,500,000
  • WCDL Development on Onewa Rd -  $10,250,000
View expert

Matt Prentice

Director

Auckland North

Matt joined Colliers International in 2006 with a focus on mid to upper end industrial & investment transactions.  Specializing in tenanted investments, occupier representation through to vacant land / building sales on the North Shore, Matt was promoted to a North Shore Director in 2015.

In 2011 and 2012 Matt was awarded the “Golden Gavel” for Colliers New Zealand as the most successful auction sales broker across Colliers New Zealand. Matt has been the number one North Shore sales and leasing broker, 2011, 2012 and 2013.  In 2012, was a top 20 performer across Colliers New Zealand and has over $600 million of sales since joining colliers International.

In 2013, Matt was in the top 10 Highest Performing Brokers Nationwide and in 2014, he had a record year completing more than 50 transactions, and  finished in the top 10% of brokers in New Zealand.

In 2015, Matt completed over 60 transactions, more than any broker North of the Bridge, again finishing in the Top 20 brokers in New Zealand.

In 2016, Matt had a record year finishing top 10 in the country and was the top broker on the North Shore.

In 2017 Matt finished in the top 5 brokers in New Zealand, and completed over 70 transactions.

In 2018 he finished in the top 10 brokers in New Zealand and completed over 120 transactions. Matt was awarded the MVP of brokerage for Colliers International New Zealand.

In 2019 Matt finished in the top 5 brokers in New Zealand and achieved the “Golden Gavel” as the highest performing “Auction Broker”. Again, he completed over 100 transactions.

2020 was a record year, selling over $250 million of stock, with 99 deals in total for the year. Matt finished as the 4th highest performing broker in NZ.

Recent Transactions include:

  • 13 William Pickering Drive, North Harbour - $17,300,000

  • 7-19 Croftfield Lane, Wairau Valley - $17,280,000

  • 6 Canaveral Drive, Albany - $13,000,000

  • 44 Arrenway Drive, Albany - $15,300,000

  • 2c William Pickering Drive. North Harbour - confidential

  • 180-184 Target Road, Wairau Valley - $13,000,000

  • 71 Apollo Drive, Albany - $17,550,000

  • 124 Bush Road, North Harbour - $14,950,000

  • 229 Dairy Flat Highway, Albany - $33,000,000

  • 34-41 Poland Road, Wairau Valley - $15m circa

  • 1-11 Parkway Drive, Albany - $21,000,000

  • 44 Arrenway Drive, Albany - $15,300,000

  • 30 Apollo Drive, Albany - $12,942,000

  • 155 Wairau Road, Wairau Valley - $11,500,000

  • 53 Paul Matthews Road, North Harbour - $5,610,000

  • 7 Armstrong Road, North Harbour - $7,400,000

View expert

Matthew Barnes

Director | Investment Sales

Auckland South

View expert