Big-Brand Bulk Retail Site For Sale Eyed For New Apartments

The large bulk-retail premises housing two big-brand consumer outlets in one of Auckland’s fastest-growing urban centres have been put up for sale.

The standalone property at 28 Catherine Street, in the centre of Henderson’s retail district, is fully leased to Warehouse Stationery and Noel Leeming.

Positioned on the high-profile corner of Catherine and Pioneer streets, it has been noted for its development potential in an area targeted by Auckland Council for growth and regeneration. The site is now being mooted as the location for a possible residential apartment project.

The freehold land and buildings at 28 Catherine Street, Henderson, are now being marketed for sale by way of a tender closing on 3 December, through Bayleys Auckland Central and Bayleys Northwest.

Salespeople Owen Ding, James Chan and Beterly Pan said the approximately 2,426-square metre building sat on some 4,497 square metres of land. The property presents a wide road frontage and incorporates 59 customer car parking spaces.

“Constructed in 1991, this modern bulk-retail building comprises mainly high-stud, open-plan retail space split into two tenancies. Each comes with associated office, kitchen and toilet amenities, rear warehouse and storage areas and loading docks,” said Mr Ding.

“The standalone building has an A-grade seismic rating of 100 percent of new building standard. A large drive-through customer car park at the front provides 50 spaces, with another nine spaces available on the southern boundary.”

The property’s twin retail tenancies generate total net rental income of $515,445 plus GST per annum.

Some 1,479 square metres is leased to Noel Leeming, which pays annual rent of $310,590 plus GST per annum. Its lease extends through to 2023, with a further six-year right of renewal and includes annual CPI rent rises and three-yearly market reviews.

Warehouse Stationery pays $204,855 plus GST for its 947-square metre outlet, on a lease running through to 2022 with a further five-year right of renewal. Its lease terms provide for annual CPI rent increases of up to three percent with a market review at lease renewal.

Mr Chan said the site’s Metropolitan Centre zoning under Auckland Council’s unitary plan allowed development up to a height of 72.5 metres for residential, commercial and retail uses.

“This zoning positions Henderson’s town hub among centres considered second only to Auckland’s CBD, serving as a focal point for commercial growth and development,” said Mr Chan.

“The flexible twin tenancies at the Catherine Street site offer existing and future tenants well-located and highly functional bulk-retail space. The open-plan, high stud space will be of interest not only to retailers, but potentially for alternative uses – for example, as an indoor recreational hub such as a trampoline park.”

The tenancies also offered new owners a chance to buy now and plan for the future, Mr Chan said. “This large freehold site offers an excellent canvas for future redevelopment to maximise value in one of Auckland’s fastest-growing urban locations.”

Ms Pan said developers would be eying the Catherine Street site’s potential for residential apartments, perhaps with retail on the ground floor.

“With established rail and bus links to central Auckland, easy access to major traffic arterials and motorways, and substantial residential development in the area, Henderson is considered by Auckland Council as a key hub for urban regeneration,” said Ms Pan.

Henderson’s commercial and retail sector had seen continued growth due to rising residential demand around the neighbouring suburbs, she said.

“Arterials near the Catherine Street site provide direct road links into Henderson’s town centre from established residential catchments in Henderson, Henderson Valley, Sunnyvale, Glen Eden, Te Atatu South and Ranui.

“The strong demand for retail in the area is demonstrated by the presence of two large shopping complexes, West City Waitakere and the Waitakere Mega Centre, along with big-brand tenants at other sites include Briscoes, Rebel Sport, Kmart and Kathmandu,” Ms Pan said.

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