The $10 million sale of a large bulk retail property at 85 Cavendish Drive, Manukau represents the highest dollar value auction ever achieved by Colliers International in New Zealand.
The fully-occupied building is on a prominent 1.1ha site opposite the Manukau Supa Centa - one of New Zealand’s largest dedicated large-format retail centres.
Colliers International Investment Sales broker Charlie Oscroft says the sale price reflects what is a substantial offering in a well-established bulk retail precinct, known to many people as a convenient retail destination.
“This spot in central Manukau is hard to beat as an investment location. Several major retailers have a presence here, including Spotlight, Mitre 10 Mega, Bunnings, Harvey Norman and Kmart.
“The split-risk characteristics of a multi-tenanted investment like this one are also always popular given their diversified cash flow and reduced income risk if a vacancy arises.”
Colliers Director of Retail, Leroy Wolland, says the limited opportunities to develop further bulk retail properties in the area added to the property’s scarcity value.
“Retail vacancy rates in Manukau are low, a reflection of the limited land supply and strategic location near motorways and surrounded by a large residential catchment. These factors mean the property will be a sought-after addition to many investors’ portfolios.”