Auckland, 7 September 2013 - A newly constructed property on a freehold title leased by a long-term Government tenant has come up for sale at 25 Bairds Road, Otara.
Marketed by Tim Boyle, David Arlidge and Claus Brewer of CBRE, on behalf of a family trust, the property is for sale by deadline private treaty closing date at 4pm on Thursday 12 September 2013.
Boyle says the office building and associated property offers a rare opportunity to acquire a blue chip investment in the tightly held Auckland market at a time when there is a considerable lack of quality investment stock available.
“It is a golden ticket investment with passive cash flow for at least ten years and the vendor is only selling to pursue other opportunities,” Boyle says.
The freehold site is made up of a flat 4507sqm section set slightly off Bairds Road with little road noise and good street exposure.
Arlidge says that the 1065sqm office building was purpose built for the Corrections Department in 2012.
“It is only one year old with high quality fit out and exteriors as well as a workshop and storage facilities on site,” Arlidge says.
“As a new building, the need for capital and maintenance expenditure is significantly reduced. There is also little risk of any potential earthquake code deficiencies which is an increasingly important consideration for commercial properties.”
Arlidge says there is considerable potential for expansion on the site which is fully fenced with 65 on-site car parks and is zoned Business 5 under the Manukau Operative District Plan 2002.
Boyle says the Corrections Department is the sole tenant on a 12 year lease commencing 2012.
“The department has a long-term commitment to the site and there are solid rent review provisions for the site linked to the Consumer Price Index so there is room for improved rental performance in the future.
“The department worked alongside an experienced construction company to create a high spec building that will be relevant to its needs well into the future. It has been fitted out with the new specs that Corrections is rolling out at its facilities around the country so they won’t be moving to another site anytime soon.”
Brewer says the property is in an area that has been earmarked for future growth, has strategic connections and access to the greater Auckland region.
“It is on the southern side of Bairds Road - just a minute’s drive to Highbrook Drive and the northern and southern motorway exchanges.”
Brewer says there are several projects underway on Bairds Road supplementing established mature properties and reinforcing the value of the site in terms of development potential and growth.“This is a location that will only improve over the course of the lease.”
Arlidge says he is expecting significant interest in the property. Brewer says that CBRE is receiving interest from a range of investors including high net worth individuals, syndicates and institutional investors, as well as listed property companies, family trusts and partnerships.
“A property like this is particularly suited to syndicate purchasers, because of the stability and security the long term tenant provides so we think the sale will be a key transaction in the South Auckland property market.”
About CBRE Group, Inc.
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 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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.
