A neighbourhood centre development with a complementary tenancy mix in the rapidly growing Auckland suburb of Milldale is being offered to the market for sale.
Located on a prime corner site at 2-12 Henry Tayler Rise, the fully leased and highly visible asset is home to a broad array of 14 tenants, including a cafe, Pizza Hut, offices, bakery, and beauty service providers.
The property has 1,338sq m of total net lettable area on a 1,798sq m site that is split across two freehold titles, providing future flexibility for buyers.
There is a weighted average lease term of six years across the tenants and the total net annual rental income is $734,781 plus GST and operating expenses with built-in growth mechanisms.
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Sitting directly opposite Waterloo Reserve, the centre benefits from excellent accessibility.
Construction sector estimates suggest Milldale will eventually house over 15,000 residents and the subject property is set to benefit from growing consumer demand in this emerging location that is tailor-made for growth.
Approximately half an hour north of the Auckland CBD, Milldale sits directly opposite Millwater and can be accessed from State Highway 1 via the Pine Valley and Dairy Flat interchange and the Millwater interchange.
The subject property is zoned Business Neighbourhood Centre Zone under the Auckland Unitary Plan.
Colliers Directors Shoneet Chand and Matt Prentice have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 5 November, unless sold prior.
The development was completed last year and the individual units range in size from 68sq m to 191sq m.
Many of the lease agreements run until the end of the 2030s if all rights of renewal are utilised.
Chand, Director of Investment Sales at Colliers, says passive, split-risk investment opportunities like this provide buyers with stable cashflow.
"The asset generates a steady rental stream from the complementary tenancy mix and the existing occupants have shown a strong commitment to the location as evidenced by the length of their lease terms," Chand says.
"The built-in annual rental increases provide future income growth while there are market rent reviews every four years for most of the tenancies."
Milldale is part of one of Auckland's fastest-growing residential corridors.
The area is a master-planned community that has been designed to cater to families to provide an appealing lifestyle. Milldale combines accessibility, amenity, and design to create a connected urban environment that's both vibrant and sustainable.
The master-plan for Milldale integrates over 300ha of housing, parks, walkways, and community spaces that provide everyday convenience on the doorstep of its residents.
The subject property is also supported by neighbouring expansion in the surrounding suburbs in Millwater, Halls Farm North in Orewa, and large-scale residential developments in Whenuapai and Hobsonville.
Prentice, Director of Sales and Leasing at Colliers, says with nearby Silverdale's commercial areas nearing capacity, Milldale represents the natural next step in Auckland's northern expansion.
"When fully built out, Milldale will house more than 4,500 dwellings made up of stand-alone properties, terraced housing, and apartment developments.
"There are a host of amenities under construction or already available to residents, including childcare facilities, schools, and health providers," Prentice says.
"Milldale can be considered one of Auckland's most family-friendly suburbs and the growth of the area will drive further need for commercial activity and service-based businesses."
- Supplied by Colliers
