Top shelf Investment in booming location

The opportunity to be part of Silverdale’s rapid growth is on offer with the sale of a hospitality investment property across the road from the Silverdale Centre.

Unit 1C, 23-25 Wainui Rd, Auckland, is occupied by the Northern Union Gastro Pub on a long-term lease. It is being marketed for auction sale by Shoneet Chand, Matt Prentice and Euan Stratton of Colliers International and is due to go under the hammer at 11am on Wednesday November 11 at 151 Queen St, Auckland CBD, unless it sells before auction day.

The Northern Union has been trading for a year and is already well established as a favourite local social spot, says Chand.

"The pub has been very popular since opening a year ago and offers locals a family-friendly environment for catching up over good food and drinks. The location across the road from Silverdale’s main commercial hub makes it a perfect central spot for the fast-growing local community."

The pub is run by experienced operators who have a strong track record of successful establishments across Auckland, Prentice says.

"The tenants have set up other strong-performing venues elsewhere in Auckland, including the newly-opened Pilkingtons on Shortland St in the CBD. They know their stuff and are well-versed in what makes pubs and restaurants favourite places that locals keep coming back to."

The pub’s operators have invested heavily in a quality fit-out of the 208 sqm premises, says Stratton.

"Extensive use of natural timber indoors provides a warm, comfortable environment, and the architects have made excellent use of the outdoor areas with free-flow access from the bar and dining room out to the courtyards and decks. Half the site has been dedicated to outdoor entertaining, resulting in a flexible, contemporary venue."

The Northern Union Gastro Pub holds a 10-year lease to the property, with the right to renew the lease for two further terms of five years each – giving a possible final expiry date of May 2034. The annual rental income of $123,750 is subject to rent reviews, providing guaranteed rental growth, Chand says.

"This property offers a set of investment characteristics that we expect buyers will find highly desirable, including a quality newly-constructed building and excellent location that should ensure good tenant demand and patronage into the future."

Property and location

The pub is part of a new retail and commercial centre which is also home to office tenants and other retail operators. The building was constructed to 100% of New Building Standard.

The Northern Union occupies the prime spot in the three-level complex, says Chand. "The pub has a highly prominent corner position in this development, which is located on a busy roundabout facing the Silverdale Centre."

The location is ideal for the tenants to capitalise on the area’s strong growth trend, says Prentice. "There are around 3,500 homes being built by Fulton Hogan in the area directly to the north of the Silverdale Centre, as well as a large and growing existing catchment in the Hibiscus Coast region."

The Silverdale Centre has been a huge success, with tenants including The Warehouse, Countdown and other national and international retailers signing up for space in the centre before construction was even completed, says Stratton.

"The centre has been trading very well since opening in late 2012, and several other large retailers including Pak ‘n Save and Bunnings have also recognised the strong growth fundamentals of this area and opened stores here in response."

Chand says Silverdale is quickly evolving into the commercial heart of the Hibiscus Coast, catering to the former Rodney district’s growing population.

"The ‘primary catchment’ population around Silverdale is expected to grow very quickly, with projections of 57 per cent growth between 2011 and 2031 when there are expected to be 140,000 people in the former Rodney area. This growth rate is higher than the adjacent North Shore’s growth, as well as that of the overall Auckland region."

The Millwater subdivision is expected to house 10,000 residents when it is completed, and will also include a swimming centre, gymnasium, kindergartens, primary and secondary schools.

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