A large-format retail property offering a combination of tenanted and vacant space has come on the market in the well-established Mt Wellington Highway bulk retail precinct.
The 3,764 sq m unit-tilted premises located at 3/43 Mt Wellington Highway is currently generating annual net rental income of $238,873 plus GST from a lease to AEQ Furniture of 1,518 sq m of the space. The balance of the unit, comprising 2,246 sq m, is vacant offering a variety of potential future options, says Bayleys’ Mike Houlker who is marketing the unit with Sunil Bhana and Jordan Brown.
“This is a great opportunity for an owner occupier, tenant or add value investor to secure large bulk retail premises close to a Who's Who of national and international retailers,” says Houlker. “They will be able to do this at a much more affordable level than would be the case in most other locations with a similar calibre of retail neighbours and customer catchment.”
A large Bunnings store is located to the rear of the property and the giant Australian-based hardware retailer has also purchased the former Masport site positioned in front of its current store on a prime corner site at the intersection of Mt Wellington Highway and the Ellerslie Panmure Highway. Directly opposite the offering, on the other side of Mt Wellington Highway, is the Harvey Norman Centre.
Other nearby tenants include Rebel Sport, Briscoes, Bedpost, Beds R Us, Burnsco marine supply, McDonald’s and a more recent addition Nick Scali Furniture, one of four New Zealand stores opened by the Australian publicly listed company.
Unit 3/43 Mt Wellington Highway is one of several adjoining bulk retail units located in a former industrial building developed in the 1960s with a seismic assessment of 70 per cent of New Building Standard (NBS).
“Its sawtooth style of design provides character space with good natural light, expansive, mostly column free space and high-pitched ceilings which makes it ideally suited to large format retailing,” Houlker says. “It could also suit a predominantly ecommerce business looking for a combination of showroom and distribution accommodation in a central location. It’s very flexible space that could be easily configured to suit a to suit a range of uses and tenancy sizes.”
AEQ Furniture occupies around 40 percent of the unit. Established in 2003, with another store in the Manukau Supa Centre, it specialises in classic European furniture including a wide range of marble products.
Sunil Bhana says the 2,246 sq m vacant tenancy is available either for purchase, in conjunction with the adjoining occupied tenancy, or for lease. He says the issue that some tenants have had with a minority of unsympathetic landlords during Covid-19 business lockdowns has resulted in more businesses looking to buy premises so they can “stay in control of their destiny”.
“Also, with interest rates so low, businesses are finding they can borrow to buy at a lower cost than renting. Obviously, an owner occupier who moves into the vacant space in this unit can use the rental income from the AEQ tenancy as well to help pay the mortgage on the purchase of the property. There would also be flexibility in future to possibly expand into that neighbouring tenancy.”
Jordan Brown says the unit is well positioned on Mt Wellington Highway, one of Mt Wellington’s busiest arterials which connects with key motorway and transport links. She says there are dedicated customer carparks located between the front of the premises and the road frontage which can be entered and exited from three different points along Mt Wellington Highway. There is also a loading and despatch area at the rear of the building providing roller door access.
Brown says more older industrial premises in the area are gradually being transformed into retail premises with the NCI Packaging site further along Mt Wellington Highway slated for retail redevelopment. “The transformation of nearby Lunn Avenue from predominantly industrial to retail is also contributing to this increasingly busy retail precinct in the north eastern part of Mt Wellington. It is close to Remuera and the massive new Fletcher Stonefields residential development and easily accessible from eastern suburbs such as St Heliers, Pakuranga and Howick.”