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News Release

Auckland

Well-located supermarket with long lease

JLL marketing Unit 8, 130 Dawsons Road, Flat Bush


 

 

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130 Dawson Rd 02 - press release small-min.jpgA substantial bulk retail unit has become available in Flat Bush with a SuperValue Supermarket up for sale. 

Zoned Local Centre, the freehold property is a substantial size at approximately 2,140 sqm and located on busy Dawsons Road with secondary access via Te Irirangi Drive.

JLL agent Tommy Zhang says, “The property has successfully traded as a supermarket since it was built in the 1990s and although the brand of the supermarket has changed during this time, the patronage has only ever increased due to the substantial population growth in the area with new subdivisons in Dannemora and Flat Bush itself causing the area to grow at a rapid pace.” 

In addition to the supermarket, as part of the offering is a small retail shop, which is currently a Fiji Takeaway store and also an ASB ATM on-site. With a total rental income of $390,839 + GST per annum and rental reviews occurring every three years, interest in the property is expected to be high due to few properties like this being on the market and the 30-year lease in place. “The lease commenced in 2010 with a 15 + 15 right of renewal, of which there is 7.5 years left in place which will provide the new owner with a good passive income. Consumer price index reviews and a hard ratchet clause provides a strong chance for rental growth,” says Zhang.

With passing traffic at over 9,500 vehicles per day during the working week, the property is not short on visibility. As part of a multi-unit development, the supermarket and takeaway store sit amongst other small shops and businesses and together, as part of their body corporate, share access to the 150 car parks on-site. The property could benefit from redecoration, but is currently free from any compulsory requirement for earthquake strengthening with a NBS of 71%.  

Says Zhang, “A tremendous amount of residential development has occurred in the area, with Flat Bush becoming a popular place to live and this has ensured regular custom to many local businesses. The property sits in an established residential location and has easy access to the motorway and bus services that run in the area.

“Previous sales of supermarkets have been rare and highly sought after with similar properties in the Auckland region showing stable annual cash flows. With a strong remaining lease term in place and the supermarket being a subsidiary of large conglomerate, Progressive Enterprises, this property has a lot of boxes ticked.”

The property will be sold through an Expressions of Interest campaign closing 4pm, Thursday 28 September 2017.

Read the NZ Herald story here​.