The commanding main road retail premises anchored by one of New Zealand’s top bedding and homeware chains are up for sale in fast-growing Pukekohe.

The property fronting Manukau Road is the most visible portion of the town’s busiest destination retail complex, The Zone. The more than 1,220-square-metre premises for sale are anchored by a Bed Bath & Beyond outlet, on a new eight-year lease.

Bed Bath & Beyond lays claim to being New Zealand’s only specialist retailer of linen and Manchester-related products. Originally known as Linen for Less, it started out in 1995 selling seconds and overruns from a bedding manufacturer in Auckland. It has since grown into a chain of more than 55 Bed Bath & Beyond stores nationwide.

Two smaller tenancies in the Manukau Road property are occupied by international-brand cake bakery The Cheesecake Shop and local favourite Crown Bakery & Café.

The stratum in freehold-titled property generates a total net rental return of $522,805 plus outgoings and GST per annum.

Bed Bath & Beyond pays an annual net rent of $428,632 plus outgoings and GST for its approximately 1,088-square-metre store premises, on a current lease that runs through to 2032.

Further rights of renewal are available which, if exercised, will extend to 2046. The lease agreement provides for CPI rent reviews every two years, replaced by market reviews upon lease renewals.

The property at 1-3, 136 Manukau Road, Pukekohe, Auckland, is being marketed for sale by Shane Snijder, Tommy Zhang and Mike Hook of Bayleys Real Estate.

It will be sold by way of a tender closing on Wednesday 16 April, unless sold prior.

The approximately 1,224 square metres of buildings sit on some 3,365 square metres of land with 44 car parks.

“This is a unique opportunity to buy this standalone retail investment property in the most prominent position in The Zone shopping centre,” said Snijder.

“With over 20 shops, The Zone has pride of place as Pukekohe’s most popular destination retail hub. The position of the site for sale, fronting busy Manukau Road, ensures exposure to heavy foot and vehicle traffic throughout the week,” Snijder said.

The site forms part of the General Business zone under Auckland’s unitary plan.

Snijder said this permitted a variety of business activities ranging from light industrial to limited office, large-format retail and trade suppliers.

Zhang said the location in the heart of Pukekohe was ideal for retail tenants to cater to a lively and growing catchment.

“Pukekohe itself is a town of over 27,000 people which is a vital service hub for surrounding rural areas and workers at the Glenbrook Steel Mill. Increasingly, it’s also a popular ‘dormitory town’ and base for commuters working throughout greater Auckland.

“Connectivity is supported by the site’s position within a 12-minute drive of the Southern Motorway, and three minutes from Pukekohe train station.

“It sits within a wider Franklin area whose real estate appeal is underpinned by unprecedented expansion as a southern epicentre of Auckland regional growth, combined with a limited supply of commercial property for sale,” said Zhang.

Hook said current and projected population growth was driving numerous major development projects.

“These include a 360-hectare mixed-use precinct bringing large-scale industrial and residential development beside State Highway 1 at Drury South, along with Kiwi Income Property Trust’s planned Drury town centre, and Fisher & Paykel’s $275 million acquisition of 100-plus hectares for a new research and development campus,” he said.

Other key projects include the Paerata Rise lifestyle township, creating 4,500 homes between Karaka and Pukekohe, and the Auranga project which aims to deliver 2,650 dwellings just west of Drury village.

“With more than 40,000 new homes and 38,000 jobs set to be created in the next 30 years, this represents a generational step-change in scale and demand – making an investment in Franklin today a compelling proposition for the future,” Hook said.