Shopping centre on State Highway One goes up for sale

Wednesday, 3 October 2018, 12:23 pm
Press Release: Bayley's Real Estate

3.10.2018

The land and buildings housing one of Whangarei’s first suburban neighbourhood shopping hubs has been placed on the market for sale.

The Otaika Shopping Centre in Raumanga on Whangarei’s southern urban boundary features a 1,270 square metre building located on some 2,799 square metres of freehold land zoned business 3 for suburban retail use.

Originally built in the 1960s and expanded in the 1970s, the Otaika Shopping Centre consists of eight retail and commercial tenancies – generating a combined annual income of $260,534 per annum. Among the individual retail tenancies are:

• Grocery store Four Square, currently on a two-year lease expiring in 2021

• The Aussie Butcher, currently on a six-year lease expiring in 2021

• Liquorland, currently on a 10-year lease expiring in 2027

• Otaika Pharmacy, currently on a 10-year lease expiring in 2027

• Postshop, currently on a 10-year lease expiring in 2027

• Otaika Dairy, currently on a 10-year lease expiring in 2027

and

• Otaikia Takeaways, currently on a 10-year lease expiring in 2028

Meanwhile, guaranteed rental revenue of $18,690 from a 115 square metre vacant commercial space above the dairy and takeaway outlets has been underwritten by the vendor for a year.

The Raumanga property is being marketed for sale by auction at 1pm on October 24 through Bayleys Whangarei. Salespeople John Haselden and Neil Campbell said Otaika Shopping Centre was suburban Whangarei’s first ‘one-stop-shop’ retail hub - constructed as the city was expanding south in the 1960s.

“It is the last retail shopping complex heading out of Whangarei where shoppers can purchase household and domestic commodities, along with food and beverage products,” Mr Campbell said.

“With the Whangarei bypass route bypassing the city centre, greater emphasis has been placed on urban shopping locations – such as the Otaika Shopping Centre. New Zealand Transport Agency figures show an average of 30,000 vehicles drive past the location daily.”

The property includes 60 car parking spaces spread on either side of the complex, and has entrances from two points off the 150 metre State Highway One frontage onto Otaika Road, with an additional back entrance off the Otaika Road trunk. Delivery vehicles have access to the retail units from a small service lane to the rear of the property.

The Four Square and Aussie Butcher portion of the building is a high-stud structure typical of grocery store formats. A mezzanine floor within the Four Square tenancy is used for offices and storage.

“The vacant commercial space above the diary and takeaway outlets has been used in the past over the years as rooms for a professional services business, and a hairdressing salon - each occupying approximately 55 square metres, With a refurbishment and refit, the existing spaces would be eminently suitable for such uses again,” Mr Campbell said.

“Alternatively, the two spaces could be unified into one larger office unit.”

Mr Haselden said Otaika Shopping Centre had a perfect tenancy mix – with the complimentary retail outlets offering virtually everything local household shoppers required – ranging from toilet paper, toothpaste and milk, through to a meal of fish and chips washed down with a glass of wine or beer.

“Meanwhile, the pharmacy is conveniently located just across the road from a neighbourhood medical centre – enabling patients to have their prescriptions filled without having to go into town,” he said.

“As literally the ‘gateway’ to southern Whangarei along State Highway One, the Otaika Shopping Centre also services the immediate residential suburb of Raumanga, as well as semi-rural locations at Otaika and Portland further south.

“For many residents on farms and lifestyle blocks south of Whangarei it is the last stop to buy grocery supplies and comestibles when heading home … or of course the first place to stop if they are coming into the city for a convenience shop.

“Businesses within the block also record strong trading figures from the complement of both pupils and staff at Northland Polytechnic which is situated immediately across the road.

“Five of the tenancies are on relatively new leases stretching out almost 10 years. That’s rare for a retail block of this nature – but reflects the reverence with which the Otaika Shopping Centre is held by locals.”

ends

© Scoop Media

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