Manukau investment with blue-chip tenant
JLL is marketing an opportunity in Manukau, a tightly-held growth area in Auckland’s south, with convenient access to the southern corridor and north towards Auckland’s CBD.
2/42 Lambie Drive presents a rare opportunity to purchase a hands-free investment with a blue-chip international tenant that has been in the property for over three decades with a long-term lease in place.
“The tenant covenant is indisputable,” says JLL senior broker Kevin Reardon.
“The tenant, Dulux Group (Australia), has effectively been occupants of the property since it was built back in the late
1980s.
“Its blue-chip reputation is further enhanced by being wholly owned by Nippon Paint Holdings, listed on the Japanese Stock Exchange, the fourthlargest paint manufacturing business globally.”
The tenant currently pays a net annual rental of $100,500 plus GST plus operating expenses, supported by a market rental valuation.
A new six-year lease period began on May 1, 2022. The original lease dates back to May 1989.
Aside from the strong-tenant covenant, the property has a list of strengths and highlights including a bankable IEP rating of greater than100 per cent (equivalent to A+ grade).
The unit is one of four within the complex, being a well-maintained and adaptable generic trade retail unit with ground-floor showroom, retail area and warehousing, as well as office space upstairs.
The well-kept property comes with little upkeep requirements at present so the buyer can begin seeing passive income without any worries upon settlement.
“Properties of this calibre rarely come to market, let alone within a tightly-held and thriving suburb such as Manukau Town Centre,” says Reardon.
“There are ample amenities nearby and superb public transport access, walking distance to both the Manukau Train Station and Manukau Bus Hub.
“The area has been earmarked for future growth by the Auckland Council, which will revitalise the suburb to drive increases in population and commercial opportunities in the area.”
The unit faces directly onto Lambie Drive, with undisrupted road frontage, which is used by approximately 2500 cars an hour during peak travel times.
Quick and easy access to both motorways ensure the connectivity of the property to all major locations, including the CBD.
The property will be sold through deadline private treaty closing February 16 unless sold prior.