Investors banking on Heartland home base
The standout property that has housed the headquarters of Heartland Bank for over a decade is for sale in the Auckland city-fringe hot spot of Newmarket.
The four-level stand-alone property sits in the heart of the key office and retail stronghold. It combines two levels of offices leased to the bank with
100 carparks over four levels plus six high-profile retail tenancies across three road frontages.
The fully-leased site generates a total annual net rental return of $1,458,226 plus GST with a weightedaverage lease term of approximately five years.
Anchor tenant Heartland Bank is an NZX-listed, New Zealand operated and managed financial institution with roots stretching back to 1875. The bank has 13,000-plus shareholders and holds more than $4 billion in deposits from 44,000 customers.
It pays an annual net rent of $806,521 plus GST for its nearly 1500sq m premises with signage and naming rights and 60 carparks on a lease that runs through to 2029.
Ground-floor retail tenants include premium sound and vision brand Bang & Olufsen, Mortimer Hirst Optometrists and Recycle Boutique as well as 24/7 gym Anytime Fitness.
Intensive zoning within the Newmarket metropolitan centre allows a range of options for development or conversion to residential use.
The freehold land and buildings at
35 Teed St are being marketed by Alan Haydock and Damien Bullick of Bayleys Auckland Central by tender closing Tuesday May 28 unless sold prior.
The approximately 1673sq m fee simple site contains two interconnected buildings with a combined floor area of 2812sq m.
The main building fronting Teed St was constructed in 2002 with the second building fronting Eden St being built in 1965 and more recently refurbished and seismically strengthened. The buildings have IEP seismic ratings of 80 per cent and 67 per cent NBS respectively.
Haydock, who is senior director of Bayleys’ Auckland Metropolitan Markets team, said the property would appeal to investors with its diversified income from well-presented contemporary offices, high-profile retail tenancies and plentiful parking.
“Heartland Bank occupies office premises on levels two and three. These are fitted out to a high standard and benefit from excellent natural light and outlook due to the three road frontages and elevated north-facing position.
“The upper office level features a roof deck and garden
with panoramic views.
“In addition to the 100 carparks within the property, retail tenants have the benefit of extensive short-term street and off-street parking directly outside and opposite the property,” Haydock said.
Intensive Business—Metropolitan Centre zoning, combined with the sizeable fee simple landholding and triple road frontages, support significant development possibilities in the future. It allows for development up to approximately 35m, subject to other council requirements. Residential possibilities
are further underpinned by the site’s position in the “double grammar zone” for enrolment at Auckland Grammar and Epsom Girls’ Grammar schools, and close to other top schools such as Diocesan School for Girls and St Cuthbert’s College.
Bullick said one of the property’s most attractive attributes was its location in the heart of one of New Zealand’s premier office and retailing precincts, a few doors from Westfield Newmarket.
“Newmarket has attracted numerous major corporate office occupiers. Broadway and the adjacent streets
are home to an array of top local, international and luxury brands as well as boutique outlets.
“The suburb is expected to be one of Auckland’s leading growth locations with much of the area zoned for intensification under the Auckland Council’s unitary plan.
“Ongoing development of the University of Auckland’s mixed-use Newmarket campus, including student accommodation, will be a key driver of the precinct’s continued growth,” Bullick said.