High profile New Lynn retail block under the hammer

Retail investment opportunity in one of Auckland's liveliest centres of urban regeneration

The sale of a high-profile New Lynn retail block presents a chance to acquire a fully leased, split-risk investment with excellent long-term redevelopment potential in a key growth hub.

Colliers International is marketing 3114-3120 Great North Road for sale by auction at 11am on Tuesday 13 November, unless it sells earlier.

Gareth Fraser, Auckland Director of Investment Sales, says the property comprises a single-level strip retail building of about 307sq m on a 486sq m freehold site with rear car parks.

“This well-known block of shops is prominently located on a key arterial route in one of Auckland’s fastest-growing metropolitan centres.

“The property has 18m of road frontage and is well positioned to capture convenience retail demand, making it highly attractive to local businesses.

“This superb investment opportunity is fully leased to four tenants returning $85,240 plus GST in gross annual rental income.

“The site offers obvious development credentials for the future, with Metropolitan Centre zoning allowing for some of the highest density of development in Auckland.

“This is an excellent opportunity to acquire a solid investment with future upside in one of Auckland’s liveliest centres of urban regeneration.”

New Lynn is located only 10km southwest of Auckland’s CBD and benefits from abundant transport links.

The suburb is served by a major bus interchange and train station, while easy access to the motorway network is available via Maioro Street.

The property for sale is tenanted by three local convenience eateries and a vape shop.

Chinese restaurant Noodle Heaven, which specialises in Sichuan-style cuisine, occupies a 45.95sq m tenancy at 3114 Great North Road.

A four-year lease, held by Tesnack Limited, returns $14,933.74 in annual rent. The lease expires at the end of June 2021, with no rights of renewal.

Indian restaurant Juleez Kitchen occupies a 148.5sq m tenancy at 3116 Great North Road.

The restaurant is on an eight-year lease, held by Nelson Navikesh Ram, returning $33,888 in annual rent. The lease expires in mid-June 2023, with no rights of renewal.

Leading New Zealand vape retailer Vapo occupies a 46.5sq m tenancy at 3118 Great North Road.

A three year-lease, held by VEC Limited, returns $16,000 in annual rent. There are two rights of renewal of three years each, with the next rental review in June 2020.

Paasha Turkish Kitchen, which serves Turkish kebabs and grilled cuisine, occupies a 66.55sq m tenancy at 3120 Great North Road.

It is signed to an eight-year lease, held by Paasha Cafe Limited, returning $20,419.01 in net annual rent. A four-year right of renewal extends the final expiry date to mid-June 2025.

James Appleby of Colliers’ West Auckland office says New Lynn is currently experiencing a high level of growth, with significant commercial development in the area.

“Listed property company Kiwi Property recently refurbished the popular Lynn Mall shopping centre with an expansive cinema complex and the new Brickworks dining precinct.

“Other retail destinations include Bunnings Warehouse, The Warehouse and Mitre 10 Mega.”

Appleby says strip retail also remains a vital part of New Lynn’s trading mix, with high tenant demand for space.

“Retail units in the recent Merchant Quarter development, a short walk from the property for sale via the popular Totara Ave shared space, were fully leased and sold soon after completion.”

Colliers’ Site Sales Director Josh Coburn says residential development in New Lynn has also been heating up.

“Major developer Avanda is master-planning a new housing development on the former Crown Lynn potteries site.

“West Edge will comprise a mix of terraced housing, apartments, retail space and community facilities across the 11.3ha site.”

Coburn says Auckland Council recognises New Lynn among Auckland’s 10 metropolitan centres.

“Its plans for the suburb envision a unique, sustainable metropolitan centre with a world-class transport interchange.

“As a result, New Lynn’s population is projected to grow by 10,000 by 2030, adding 2,000 new jobs to the area.”

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