A commercial property with low site coverage and a diversified income stream offers a rare development opportunity close to vital transport links in a thriving growth precinct.
Multi-tenanted buildings on a substantial site in the heart of the Mount Wellington growth area provides purchasers with tremendous future development opportunity, Bayleys salespeople say.
The 9,281sq m (more or less) freehold site at 519 Ellerslie-Panmure Highway is in the heart of the city-fringe community’s thriving retail precinct, currently experiencing significant residential, commercial and infrastructural development.
Bayleys Auckland City & Fringe team director Alan Haydock says investors and development firms are looking through near-term challenges to future opportunities, with expansion providing feasibility through enhanced fundamentals.
“Strategically located a short distance from key highway interchanges, in a prominent location adjacent to one of the city’s busiest McDonald’s stores, the property is in a prime spot to leverage future growth.
“Auckland Council has earmarked Mount Wellington and Panmure for more intensive residential development, which brings commercial opportunity and a pipeline of planned infrastructure works.
“A site opposite the property, formerly occupied by Moyes Panmure, has been acquired by Woolworths, and a neighbouring property on Mt Wellington Highway is set to undergo a development into a large residential build-to-rent with 297 units.
“Significant recent improvements to the immediate transport network have been completed. The Panmure Train Station – just two minutes from the subject property – has experienced major upgrades, and the eastern bus corridor is next, providing high-frequency public transport linkages to Auckland’s CBD.”
Mr Haydock is marketing the property for sale by tender closing at 4:00 pm on Tuesday, 24 October 2023 (unless sold prior), with colleague Damien Bullick.
The substantial landholding is zoned Business – Mixed Use, providing moderate to high-intensity residential and commercial development with a maximum build height of 18m.
The property generates a total net income of circa $807,379.93 plus GST, with opportunities for immediate rental growth.
Bayleys Auckland City & Fringe team associate director Damien Bullick says two standalone retail buildings and a smaller rear workshop building occupy the site with a low building coverage ratio
At the site’s west, a two level building and a basement are split into two main tenancies.
“A business operates a large-format Chinese restaurant on the ground floor with private dining rooms above while the basement is utilised as storage and refrigeration.
“The business has a six year lease expiring in September 2027.
“Also included in this lease is the automotive workshop behind the main building.
Mr Bullick says a separate business operates a Vietnamese restaurant in the same building, with a six year lease to September 2024.
“The tenant has one, three year renewal right, with rent reviews to CPI plus one percent.”
There is a second standalone building, located on the eastern portion of the site, which features a two level premises fully occupied by a business which operates a Chinese supermarket on the ground floor.
It has a lease expiring in May 2024.
The remainder of the site is underdeveloped and used as car parking for approximately 150 vehicles.
Additional income is generated from a billboard on the property with a 12 year lease to September 2034, plus two six year renewal rights.
“Flexible lease terms provide an attractive option for development in the medium term.
“It’s a stand-out property and a rare chance to acquire a strategically-positioned asset with excellent development fundamentals, benefitting from its low site coverage and the opportunity to collect income whilst plans are put in place,” he says.