High-quality retail investments in a superb Auckland growth location
Three brand-new retail units in one of Auckland’s fastest-growing communities are on the market through Colliers International.
Located at the heart of the residential subdivision of Millwater, between Silverdale and Orewa, the units in 177 Millwater Parkway offer good proximity to a growing number of homes, schools, sports fields, and walking and cycling tracks.
Colliers International broker Euan Stratton is marketing the retail units for sale with colleagues Sean Honeycombe and Matt Prentice.
Stratton says it is an excellent opportunity for investors to add one, two or all three properties to their portfolios.
“Superbly located in one of Auckland’s fastest-growing communities, these high-quality retail spaces are well positioned to benefit from a growing catchment that includes many young, well-off families.
“The units are part of the new Millwater Central Terraces development – a mixed-use residential and retail complex completed last year by reputable developers Broadway Property Group.
“The timeless yet contemporary design was created by award-winning Julian Guthrie Architects, while Broadway developed the property to a very high standard.
“Millwater Central Terraces builds upon and complements the success of Broadway’s adjacent Millwater Central retail centre, which is extremely popular with the area’s rapidly expanding community.”
Stratton says two fully leased units are for sale by individual auction at Colliers International’s North Shore office on Wednesday 21 March at 1pm, unless sold prior.
Both offer long-term leases to established tenants, backed by the added security of personal guarantees.
Unit 44 is leased to HelloWord Travel – a leading international travel agency with more than 2000 independent franchises in Australia and more than 60 in New Zealand.
The 86.38sq m unit is signed to a five-year lease returning $34,552 net plus GST a year, with market rent reviews every two years. Two rights of renewal of four years each extend the final lease expiry to December 2030.
Unit 49 is leased to The Goldsmith – an independent jeweller, previously based in Orewa, that has been manufacturing and restoring jewellery since 1978.
The 86.51sq m unit is on an eight-year lease returning $34,604 net plus GST a year. Fixed CPI reviews take place every two years, while market rent reviews occur every four years. An eight-year right of renewal extends the lease to 2033.
Along with the personal guarantee, the lease is further strengthened by a bank bond.
Stratton says the units make for excellent 'bottom-draw' investments.
“With new tenants, advantageous lease terms, and brand-new construction in a massive growth area, these investments could be viewed as ticking all the boxes,” he says.
Unit 42 is for sale by deadline private treaty closing at 4pm on Wednesday 28 March, unless sold prior.
Honeycombe says the 172.82sq m unit is partially leased to Invive Spa, which occupies 108.11sq m, while the rest remains vacant.
Invive is an independent local health spa business signed to a six-year lease returning $43,244 net plus GST a year, with market rent reviews every two years. A five-year right of renewal extends the lease until July 2028.
Honeycombe says the 64.71sq m vacancy is the last available space on the retail strip, which offers a range of opportunities for both owner-occupiers and investors.
“Owners have the opportunity to occupy the vacant space immediately, with the added benefit of additional income from the lease to Invive.
“Alternatively, investors will appreciate the security of a split-risk investment in a fast-growing area.
“Investors can also add value in the short term by letting the remaining space, which would suit retail or professional users.
“This is the last available space in the development and is a size and shape that will appeal to a wide range of businesses.
“The rental potential is up to $450 per square metre, potentially returning $29,119 net plus GST in annual rent.”
Prentice says the properties for sale are among 12 ground-floor retail units in Millwater Central Terraces.
“The development was specifically designed to benefit both residents and retailers in this fast-growing location,” he says.
“Businesses can draw on customers from the 37 terraced houses above and behind the retail units, as well as the wider retail catchment of the wider Millwater subdivision.
“Residents of the terraced houses appreciate being able to access shops, cafes, schools, parks and walking paths right on their doorstep.
“Those in the wider Millwater area enjoy the convenience of being able to shop and eat in their own neighbourhood, without having to negotiate the traffic or busy intersections of Silverdale. Instead, they can park directly outside their local shops to get what they need.”
Prentice says a number of schools are located nearby, which brings a large number of parents and teachers to the during school pick-up and drop-off, many of whom are on foot.
The property also draws on passing traffic from the surrounding sports fields, which brings people to the area on weekends as well as after school and work.
A hockey turf is under construction directly across the road from the shops, while the Metro Park sports field is nearby.
The property is also close to walking tracks and the Orewa River, which draws a large number of walkers, runners and cyclists past the shops.
Prentice says Millwater Central Terraces is situated on a high-profile corner site on the link road between Silverdale and Orewa.
The property is within 15 minutes of the Northern Motorway interchange and Albany.
Nearby Silverdale is a growing commercial hub with large national tenants including Pak‘n Save, Bunnings Warehouse and The Warehouse. This provides Millwater residents with a level of amenity that complements their local shops.
The overall Silverdale area is growing rapidly, with about 3,500 homes are planned in the area directly to the north of the existing township.
Follow us on Facebook and Instagram.
Get the latest commercial real estate insights and property news.
Looking for commercial real estate? Try our property search or connect with expert commercial real estate agents today.
Need your real estate assessed? Work with our expert property valuation services team.