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News Release


Assets occupied by banks on offer



Long term investment with development potential/new-zealand/en-gb/news/916/long-term-investment-with-development-potentialAUCKLANDLong term investment with development potential
Former Fire Station on high profile corner site/new-zealand/en-gb/news/915/former-fire-station-on-high-profile-corner-siteCHRISTCHURCHFormer Fire Station on high profile corner site

​​​​​​Two Auckland commercial investment properties, both leased to national New Zealand banks ANZ and BNZ, are being offered for sale by commercial sales agents Ben Curran and Ian Hall of JLL, on behalf of Mahimahi Investments Limited, via an expression of interest campaign closing Monday 4pm 25th May 2015, if not sold prior. 

Located in Otahuhu’s vibrant town centre, a 15 minute drive from Auckland’s CBD, the properties are surrounded by a very diverse range of business occupants and within an area of high intensity development. Both buildings are in an excellent position, fronting the eastern side of Great South Road, the main retail street through the centre of the Otahuhu shopping strip. 

Ben Curran, sales agent at JLL says, “Having two notable tenants is one of the strong attractions of these investments and the market has shown a clear preference for investments backed by banking tenants in recent years. Within the area are Westpac, ASB, the two subject premises and Postbank, which indicates that the major trading banks regard this as a sound location and confirms the continued interest of this position”. 

The two commercial properties are located at 320-336 Great South Road Otahuhu and comprise of adjoining banking chambers. These assets are being offered to investors, developers or owner/occupiers as either a joint or separate investment opportunity. Unit D, occupied by national retailer BNZ and 196sqm in size, is producing a total net rent $51,000 per annum. Unit E, occupied by ANZ, is the larger of the two at 286.50sqm and produces a net rent of $58,500 per annum. 

Curran continues, “There are a number of positive infrastructure changes occurring in the area that will have a significant impact on the value of these properties including the East West Link and the Otahuhu bus train interchange which will considerably improve connectivity and boost the profile of the area.”
According to JLL research, the average passing daily traffic for Great South Road is 11,642 vehicles and 21,725 vehicles passing daily for Atkinson Avenue, Otahuhu. With the governments proposed infrastructure works improving connectivity in the area, traffic will increase and subsequently footfall traffic will coincide. 
Work is underway for the new retail development, Double Two Ltd, located on 217-225 Great South Road which is expected to be completed July 2015 and has tenants now secured including a day-care centre on the first floor. A proposed residential development on Atkinson Avenue is in the planning stages with resource consent for 36 townhouses, and with the strong population growth in the area, will add to housing supply. Population projections from Statistics New Zealand indicate a 15% growth in population in the Otahuhu area from between 2013 to 2023. This significant population increase indicates that Otahuhu is becoming the next place to move as the growth of Auckland continues to expand.  

Ian Hall, sales agent at JLL says, “There is also the potential in the future to subdivide both premises into smaller shops which have traditionally attracted good tenant demand in this area and which could prospectively gain higher rents for the owner on a square metre basis”. 
Hall continues, “Both buildings have recently undergone a seismic strengthening process which is a significant benefit for the future. An Earthquake Prone Policy Assessment for both units has been carried out by Beca, and indicated that after their recent earthquake strengthening they now have a IEP rating of 85%”. 
The buildings are part of a 1990s retail development of the former Criterion Hotel. The original Criterion Hotel on this site dates from the late 1840s. To this day, there is a now inaccessible cellar under the buildings, which was where the beer was stored.

The properties are part of a unit entitlement complex between Criterion Lane, Atkinson Avenue, Avenue Road and Great South Road containing a hotel, TAB and a fast-food restaurant. Both units, D and E are freehold and zoned Business Activity 3, under the Auckland City Council’s Operative District Plan. Business 3 zone is applied to centres within the city containing a significant degree and intensity of business activity.