Impressive office tenant roll call in Greenlane Corridor
Impressive office tenant roll call in Greenlane Corridor
13 October 2015
Auckland, 13 October 2015 - The opportunity to own an efficient and flexible office building in Auckland’s sought-after Greenlane Corridor, fully leased to government and international corporate tenants, is offered exclusively through CBRE.
Unisys House, a four-level building at 650 Great South Rd, Ellerslie, is being marketed by Jonathan Ogg and Bruce Catley of CBRE. It is for sale via an international deadline private treaty campaign closing on Thursday November 12.
Almost 40 per cent of the property’s lettable floor area is leased to the New Zealand Government, making the asset a perfect investment for buyers looking for income security, says Ogg.
“The Inland Revenue Department and Ministry of Health occupy 40 per cent of the property, with the remainder leased to Unisys, Fletcher Construction and Health Alliance. This provides a significant and diversified income stream backed by excellent tenant covenants.”
The asset, which provides annual net passing income of $2.6 million, will be considered a trophy holding by investors in a market characterised by a scarcity of very well-leased commercial assets in good locations, says Ogg.
“Within this asset class and price bracket, the investment qualities of this property are considered very compelling. The building’s build quality and prominent position offer significant pride of ownership.”
The 8,350sq m building provides large flexible floor plates of over 2000sq m each and 299 on-site car parks, making it extremely attractive to potential tenants should a vacancy arise in the future. As such, CBRE expects strong demand for the property, says Catley.
“Fully leased office assets in this central location on a main arterial, offering large floor plates and an excellent car parking ratio are rarely available on the open market.”
The property’s fundamentals will place it firmly on the radars of both local and international buyers, Catley says. “With competitive finance on offer, buyers will view the timing as excellent to secure this building given the expected yield differential to a brand new asset.
For offshore buyers, the property’s attributes will also make it desirable at a time when the investment spotlight is broadening its focus from Asia and Australia to include New Zealand, he adds.
“The property’s strong investment profile is supported by a central Auckland fringe office market characterised by limited stock availability, decreasing vacancy rates and continuing pressure from occupier demand at the premium and A grade end. These trends have made both local and international buyers sit up and take notice of investment offerings in the popular Greenlane Corridor.”
There is also potential to add value through increasing the property’s income stream in the future, says Ogg. “The average office rents in the building are approximately $240 per square metre, which raises the opportunity for future rental growth considering the rents for new buildings in comparable locations, which are often well above $375 a square metre.”
The building was constructed in 1997 and has a New Building Standard seismic rating of A+. A three level podium car park was added in 1999, providing additional parking along with the original basement car park.
The building has been substantially refurbished and is well presented throughout, with a marble foyer and timeless, modern design, Ogg says. “Several of the tenants have invested in high quality fit outs of their own.”
The ground floor is mainly leased to global information technology company Unisys, with the remaining space occupied by Fletcher Construction. Level one is fully occupied by the Inland Revenue Department. Health Alliance, which delivers non-clinical services to New Zealand’s 20 district health boards, is on level two. The top level is shared between the Ministry of Health and Fletchers.
The property occupies a highly visible site on Great South Rd, says Catley. “The building is in a well-established cluster of low to medium-rise commercial buildings referred to as the Greenlane Corridor.”
The area has excellent transport connections and is within close distance of the Ellerslie Panmure motorway interchange, providing ready access to the Northern and Southern motorways, he says.
“The Greenlane Corridor is very popular among businesses because of its central Auckland location, higher carparking ratios than the CBD and the availability of rail and bus services which add to the appeal of the location for staff. Ellerslie train station is just 200m away.”
Ellerslie’s vibrant and growing town centre is accessed via Sultan Street and Kalmia Street connections over and under the motorway. Cafés, banks, restaurants bars and other services are on offer in the town centre. The property is also adjacent to Goodman’s Central Park Corporate Centre, which offers further amenities.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.