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Transformational Papatoetoe retail investment

Contributor:
Fuseworks Media
Fuseworks Media

A new retail redevelopment at the centre of the transformation of Old Papatoetoe is up for sale.

Papatoetoe Mall is a multi-tenanted local shopping centre strategically positioned on the main retail strip at 65 St George Street.

It is centred on a new public plaza that provides a key pedestrian link to the recently redeveloped New World supermarket, which officially opened on 25 March, as well as the upgraded public car park to the rear.

The mall and plaza have been revitalised as part of a wider urban renewal programme, led by the city’s regeneration agency Panuku Development Auckland, which aims to revitalise Old Papatoetoe town centre into a place for people and enterprise to thrive, with services and facilities that the community can be proud of.

Panuku has appointed Colliers International to market Papatoetoe Mall - and the adjoining land and car park at 53 St George Street - for sale by tender closing at 4pm on Wednesday May 29, unless sold earlier.

The 2,548sq m property is anchored by a family-run medical centre and pharmacy, alongside local speciality shops and services.

Panuku Development Auckland Director Development Allan Young says the refreshed mall features an excellent mix of medical, health and retail-focused tenants.

"This is an exciting time for Old Papatoetoe. The newly redeveloped mall is the first of several upgrades that will take place across the town centre which, coupled with an upgraded New World, will really pump new life into the area."

Matthew Barnes, South Auckland Investment Sales Director at Colliers International, says it is an opportunity to secure a split-risk investment in an area undergoing significant renewal.

"The newly revitalised Papatoetoe Mall represents a key step towards realising Panuku’s overall vision for Old Papatoetoe’s town centre.

"It is at the heart of a 2.5ha block of underused council-owned land that is being redeveloped to provide better amenities, new housing, attractive public spaces, and improved access to community services and facilities.

"The result will be a rejuvenated town centre that is an attractive place for people to live, shop, meet and enjoy themselves.

"As one of the first town centre renewal projects to be completed, Papatoetoe Mall is well positioned to capitalise on this transformation. "

The property comprises two newly refurbished retail buildings on either side of the public plaza. Three freehold titles offer 35m of frontage to St George Street, which provides ample street parking.

The buildings are split into 10 tenancies ranging in size from 32sq m to 285sq m. Nine of the tenancies are on new long-term leases while one unit is vacant. The property fully leased generates an annual market income of $423,000 plus GST in net annual rent.

Investment Sales Broker Chris Wakim says the property has been attractively refurbished with contemporary materials including natural wood and colourful panels with motifs.

"The shopfronts feature aluminium joinery and full-length glazing, providing strong visual flow between the buildings and the public plaza.

"The plaza’s appealing streetscape combines new paving and public seating with native plantings and established trees."

Wakim says Papatoetoe Mall’s tenants are largely neighbourhood services that complement the supermarket.

Retail offerings include sushi, a bakery, takeaway, cafe and fashion shop. Services include massages, nail and beauty and a barbershop.

The retail tenancies are underpinned by the medical tenancies, which account for 34 per cent of the annual market rent.

Chris Farhi, Strategic Advisory Director at Colliers International, says the property is well positioned in an up- and-coming area.

"Old Papatoetoe is a traditional town centre with a strong heritage character. It supports a growing and diverse community and has significant capacity to accommodate further growth.

"The regeneration of the town centre, led by Panuku, will act as a catalyst for this growth.

"Local household incomes are already growing faster than the surrounding catchment, while house prices have

grown slightly faster than the region.

"The wider South Auckland area is also experiencing strong growth, with significant new development taking place in Papakura and Takanini."

Farhi says Old Papatoetoe offers excellent transport links to support this growth.

"The town centre provides easy access to State Highway 1, SH20, Great South Road and Auckland International Airport.

"Papatoetoe Train Station - which provides services every 10 minutes at peak times - is only 10 minutes’ walk away."

Barnes says that with such levels of amenity, Papatoetoe Mall is well positioned to benefit from the area’s growth.

"Savvy investors will not want to miss this opportunity to become part of Old Papatoetoe’s renewal."

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