OTAIKA SHOPPING CENTRE FOR SALE

OTAIKA SHOPPING CENTRE FOR SALE

Built in the 1960s and further developed and expanded in the 1970s, the Otaika Shopping Centre in Raumanga, one of Whangarei’s first suburban neighbourhoods has recently been put up for sale. Featuring a 1270 square metre building located on around 2799 square metres of freehold land, the centre consists of eight retail and commercial tenancies.

The individual tenancies combined generate an annual income of around $260,534 and include the grocery store, Four Square – currently on a two-year lease set to expire in 2021, the Aussie Butcher – on a six-year lease expiring in 2021. Four other businesses, Liquorland, Otaika Pharmacy, Postshop and Otaika Dairy are all currently on 10-year leases expiring in 2027. Otaika Takeaways also operates on the property on a 10-year lease expiring in 2028.

Above the dairy and takeaway stores, a vacant commercial space of 115 square metres with a guaranteed rental revenue of $18,690 has been underwritten by its vendor for a year.

The Otaika Shopping Centre is set to be auctioned off on the 24th of October through Bayleys Whangarei.

“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. 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,” said Neil Campbell, salesperson for the property.

Including 60 car parks spread around the complex, the property has entrances from two points off State Highway One frontage onto Otaika Road and has a back entrance off the trunk of Otaika Road. There is also delivery vehicle access via a small service lane at the back of the property.

“The vacant commercial space above the dairy and takeaway outlets has been used in the past over the years as rooms for a professional service 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. Alternatively, the two spaces could be unified into one larger office unit,” said Campbell.

John Haselden, a second salesperson for the property noted the shopping centre had an excellent tenancy mix with the retail outlets complimenting each other to offer everything local household shoppers need – from toilet paper and toothpaste to milk, alcohol and a fish and chip meal.

“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. 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,” said Haselden.

“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 ten 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.”