A highly visible two-level commercial building in the Auckland suburb of Penrose is being offered to the market for sale, giving buyers the opportunity to acquire an asset with a national retail tenant on a long-term lease.
Sitting at 730 Great South Road, Penrose, the property has 812sq m of total building area on a 1,616sq m freehold site.
The building is tenanted by Evo Cycles, one of New Zealand’s leading bicycle retailers that has more than 30 showrooms across the country and is complemented by an online sales platform.
Founded in Hamilton in 2007, the Kiwi-owned and operated business has grown from a single store into having a nationwide presence.
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Their current lease runs until 31 March 2030 and there is one further right of renewal for 10 years, leading to a final expiry in 2040.
The total net annual rental income from the property is $260,368 plus GST.
There are built-in CPI plus 1 per cent yearly rental increases and future market reviews to provide appealing rental growth for investors.
The property, zoned Business – Light Industry Zone under the Auckland Unitary Plan, sits in a prominent position with nearly 40m of road frontage and benefits from its ease of access to the nearby motorway network.
Colliers Directors Shoneet Chand, Ben Cockram, and Matt Prentice have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 26 August, unless sold prior.
The building was originally constructed in the mid-1990s as a purpose-built bank premises but has since been utilised for other means.
In its current form, the ground floor has approximately 417sq m of space and provides an open plan showroom with excellent natural light that is supported by amenities and a rear workshop area.
The first floor measures about 395sq m and has office, storage, and support space.
The tenant completed a comprehensive fit-out in 2020.
The property also offers 35 marked on-site car parks and a fully sealed yard.
Chand, Director of Investment Sales at Colliers, says buyers have the chance to secure a high-quality asset with a steady rental stream.
“The property gives prospective purchasers a desirable investment opportunity that is underpinned by its long-term lease to a well-known national retailer,” Chand says.
“The lease agreement has attractive terms that provide consistent rental income growth, something that is keenly sought by discerning buyers.”
Cockram, Director of Industrial at Colliers, says the central location of Penrose makes it a coveted location to do business from given its accessibility to surrounding amenities and transport links.
“Several new retail developments have taken shape in the suburb during the past few years, while Sylvia Park in neighbouring Mount Wellington is only a short drive away,” Cockram says.
“Its accessibility from the motorway network, which is less than 1km away, as well as its proximity to the main trunk rail line, makes it a sought-after location for commercial and industrial tenants.”
Prentice, Director of Sales and Leasing at Colliers, says there is a long-term redevelopment angle for investors to consider.
“Given the property’s low site coverage of only 26 per cent, considerable road frontage, dual-lot freehold land, and a solid, adaptable building, it has a compelling combination of appealing factors,” Prentice says.
“The new owner can enjoy a stable, growing net income stream today, with genuine strategic optionality to intensify, reposition, or redevelop the site in the future, subject to zoning and the necessary consents.”
- Supplied by Colliers
