Henderson retail offerings shine a Spotlight on Lincoln Road
Two large format retail properties on Auckland’s renowned Lincoln Road are for sale with long leases to well-known brands Spotlight, Harvey Norman and Nood.
The neighbouring properties are within the thriving Lincoln Centre retail development, which counts The Warehouse and Warehouse Stationery among a strong mix of national brands.
Three leases with a weighted average term of 8.18 years offer a substantial $740,620.90 in net annual rental income, increasing to $784,286.69 in February 2020 when the renewed 12-year lease to Spotlight commences. All three leases benefit from fixed annual rental reviews of 2 to 3 per cent.
Colliers International has been exclusively appointed to market the properties at 111M and 111N Lincoln Road, Henderson, for sale by deadline private treaty. Offers close at 4pm on Wednesday 26 June, unless sold prior.
The two properties can be purchased together or as individual unit titles. Unit N is fully leased to Spotlight and Harvey Norman in two separate tenancies and Unit M is 100 per cent leased to Nood.
West Auckland Broker Caroline Cornish says it is an outstanding opportunity to secure a significant bulk retail offering in a popular and well-established location.
“Lincoln Road is arguably the most sought-after retail strip in West Auckland, and the properties for sale are among the shining stars.
“This is your chance to acquire a cornerstone retail investment with exceptional fundamentals, including three of New Zealand’s most recognisable brand names as tenants.
“Whether you’re attracted to the exceptional tenant covenant, Spotlight’s long lease or high-profile location, these properties have it all.”
The two properties have a combined building area of some 4,313sq m across two strata titles. There is potential to further sub-divide Unit N into two titles, enabling each tenancy to sit on its own strata title.
A recent IEP assessment rates the buildings at 100 per cent NBS. They are of solid construction with concrete foundations, floors, and tilt slab walls. The exteriors feature tilt slab concrete, aluminium joinery and long run cladding and roofing.
An expansive shared customer car park serves both properties, along with the wider Lincoln Centre.
Peter Herdson, National Director of Capital Markets at Colliers, says the centre benefits from its own controlled intersection on Lincoln Road. A second entrance is via a right of way off Moselle Ave.
“The Lincoln Centre is located only 2km from the State Highway 16 motorway interchange, making it easily accessible to Auckland’s CBD, which is only a 15-minute drive away at non-peak times.
“Accessibility to and from Auckland Airport has also been dramatically enhanced with the recent completion of the Waterview Tunnel, which has put the airport within 30 minutes’ drive.”
Capital Markets Director Jason Seymour says Lincoln Road is one of the most popular retail destinations in Auckland, with high passing traffic of about 42,000 vehicles a day.
“Lincoln Road serves a dense surrounding residential catchment, linking Swanson Road to the south with SH16 to the north.
“A primary link between the Henderson town centre and surrounding suburbs, Lincoln Road is home to a mix of local and national retailers, commercial premises and residential dwellings.”
Spotlight is an international retailer specialising in homewares, fabric and craft goods. It is signed to a 12-year lease including a parent company guarantee returning $436,647 in net annual rent, increasing to $480,312.69 in 2020. Final lease expiry is in 2038.
Founded in Melbourne in 1973, Spotlight now has stores across Australia, New Zealand and Asia employing more than 6,700 people.
Harvey Norman is an Australasian retailer that specialises in furniture, whiteware and electronics. It is signed to a four-year lease returning $197,676 in gross annual rent. Final expiry is in 2024.
The Australian stock exchange-listed company and has more than 200 outlets and franchises across Australia and New Zealand.
Designer furniture retailer Nood is signed to a 6-year lease returning $159,500 in gross annual rent. Final expiry is in 2035.
Nood was founded in 2007 and now has 16 stores across New Zealand.
Henderson is an established and popular suburb that will see further growth with Panuku Development Auckland’s plans to develop a number of council-owned sites in the area.
The area is identified in the Auckland Unitary Plan as one of 10 metropolitan centres that is a key business and employment hub. It is set to undergo extensive urban development.
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