A dozen fully tenanted modern retail investment units in the popular Red Hills precinct in Northwest Auckland are for sale individually and expected to appeal to new and established investors looking to buy well in the current market.

Located at 1-3 Red Hills Road at the junction with main arterial Don Buck Road in the high-growth suburb of Massey, the 12 units form part of a broader complex and are occupied by a range of established retail, medical, childcare, food and service tenants, with many trading from the site since 2016-2017 when the complex was built.

Tenancies range in size from circa-78sqm – 741sqm, and net rentals range from $36,000 – $154,000 per annum. Leases have built-in rental review and income growth mechanisms, and many of the occupiers have exercised their rights of renewal early to cement their businesses here. The complex has effective body corporate governance and is well-maintained.

The underlying zoning is Business - Local Centre, which allows for convenience retail and service provision for surrounding residential catchments.

Peta Laery and Beterly Pan of Bayleys are marketing the Red Hills portfolio, with individual units to be auctioned on Wednesday 12th March, unless sold prior.

Laery says the precinct is a true neighbourhood convenience centre providing a childcare centre, medical practice, pharmacy, dentist, foodmart, beauty services, and a range of eateries and fast-food operators, including national operator, Pizza Hut.

“The site has dual access and good onsite parking, making it the classic ‘in and out’ option for residents in the area, avoiding the need to wrangle the traffic and crowds at busy Westgate for day-to-day needs.

“There’s been steady population and housing growth in Massey over the last decade, with more expansion forecast, so a centre like this has a readymade client base quite literally on its doorstep.

“The precinct has a loyal and regular following that really consolidated during the Auckland lockdowns when the ‘shop local’ story took over, and it’s continued to gather momentum which demonstrates that the mix of tenants is spot on.

“Locals can pick up fruit, vegetables, meat and beer for a barbecue, pop in to the dentist after daycare drop-off, fill their prescription after a doctor visit and grab some sushi for lunch – all in the same precinct without needing to move the car.”

As bank term deposit rates fall and mortgage interest rates are clipped, the retail units will appeal to both new entrants to the commercial property investment sector, and seasoned investors looking to add a passive asset to an existing portfolio.

“The smart money will recognise that we are at the bottom of the real estate cycle and look to acquire well-priced assets ahead of the inevitable uptick.

“This neighbourhood hub has performed well on the returns and capital growth sides of the coin, and the only reason the portfolio is now for sale is a change of direction for the current partnership.”

The units are located within an identified growth corridor with good arterial connectivity, and positioned to capitalise on future transport infrastructure designed to streamline traffic movements and upgrade local transit hubs in the wider Massey area, explains Pan.

“Projections show that Auckland’s northwest frame could expect an additional 100,000 people, 40,000 more houses and 20,000 new jobs in the next 30 years, which underpins the long-run potential of these investment units.”