Investors set to roll out dough to get a pizza action

A pair of suburban retail premises in high-profile locations with pizza outlets as their tenants have been placed on the market for sale.

The two South Auckland properties contain two of the big names in New Zealand’s pizza scene – Pizza Hutt and Sal’s – and are being sold independently of each other.

The first property is a block of shops at 126 Bairds Road in Otara – with Pizza Hutt as the middle tenancy, flanked by a vacant tenancy that used to house a beauty parlour, and a chemist shop. The 620 square metre building sits on some 784 square metres of freehold land zoned business light industrial under the Auckland Plan.

It has two commercial tenancies:
• Pizza Hutt is on a lease running through to 2023 with three further five-year right of renewal, currently generating rental of $40,000 plus GST per annum
and
• South Seas Community Pharmacy is on a lease running through to 2025 with two further six-year right of renewal, currently generating rental of $85,000 plus GST per annum.

A third retail premises in the block previously housed a beauty parlour but is currently vacant. The owner of the property is however in discussions with a potential new tenant, and is prepared to under-write a four-year lease at $45,000 per annum plus GST as part of the sale offering.

The single-level block at 126 Bairds Road is being marketed for sale by tender through Bayleys Manukau, with tenders closing at noon on August 8. Salespeople Tony Chaudhary, Amy Weng, and Scott Kirk said other neighbouring retail sites in the immediate vicinity included Dollar Dealers, Eazy Finance and the Roast Shop.

The second pizza-related property for sale contains a 144 square metre Sal’s pizza outlet built in the early 2000s as part of an elongated-shaped retail hub facing onto one of South Auckland’s busiest main arterial routes.

Sal’s is on a lease running through to 2025 with one further 10-year right of renewal, currently generating rental of $58,762 plus GST per annum, and rising to $60,818 next month. Annual rental increases of 3.5 percent are built into the lease.

The strata-titled Sals property at Unit 2B 597 Great South Road is part of a tilt-slab style block of retail premises - with neighbouring business operations including Ray White Real Estate, a mobile phone and stereo shop, butchery, fruit and vegetable market, bakery, pharmacy, laundromat, and healthcare practice. The Great South Road block is zoned light industrial under the Auckland Council Plan.

The property is being marketed for sale at auction at 11am on August 7 through Bayleys Auckland. Salespeople James Chan and Oscar Kuang said the Sal’s property had shared access to some 48 parking spaces immediately outside its front door, with staff and product delivery access along a small service lane running down the rear of the building. The block in which Sal’s is located has a new build standards rating of 100 percent.

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