High- flying investment
Large freehold building close to Auckland Airport with secure long- term tenant will attract investor interest
by Colin Taylor A two- level freehold building leased by Air New Zealand at Airport Oaks, Mangere, and home to the company’s Aviation Institute, is being jointly marketed for sale by Jones Lang LaSalle and CBRE.
‘‘ This distinctive- looking building at 7- 13 Rennie Drive is the base for Air New Zealand’s training facilities,’’ says John Binning, commercial sales and investments broker for Jones Lang LaSalle, who is selling the property by deadline treaty closing on May 9 in conjunction with Scott Soroka, director of industrial and logistics services at CBRE.
‘‘ It provides specialised training to the airline’s 6000- plus technical and operational staff, which includes flight crew, cabin crew, engineers and associated ground staff as well as in- ternational aircraft operators and maintenance staff.’’
Binning says Air New Zealand’s lease term began on October 1, 2010, and runs through to September 30, 2019. ‘‘ With 6 ½ years still left on the lease it is currently generating income of $ 742,564 per annum.’’
The building, constructed in the mid- 1980s, was designed for Stanley Newcomb. Sitting on a freehold land area of 11,222sq m it occupies a total area of 6283sq m, including warehouse space of 4491sq m.
‘‘ The building itself comprises about 70 per cent of 7m- stud warehouse,’’ Binning says. The two- level office wing, which was recently refurbished, is circular in design and features recessed balconies with cement fibre slate covered facades. This is connected by a link span to the factory building at the rear. The front of the office building has a steel frame with concrete block walls and floor to ceiling glazing in aluminium frames.
‘‘ The offices are fully carpeted and air- conditioned and provide a modern and contemporary environment with excellent natural light,’’ says Binning.
‘‘ A factory area has two levels at the front with an area under level which has been fitted out as Air New Zealand’s training facility, containing such equipment as wet and dry aviation simulators. The warehousing The exterior view of two- level 7- 13 Rennie Drive, Airport Oaks, leased to the Air New Zealand Aviation Institute ( left). Right: The interior view of the building houses a mock- up training airliner used by the Air New Zealand Aviation Institute. area at the rear of the building is equipped with fire sprinklers and is serviced by two container doors that are sheltered by a canopy at the rear.
‘‘ There is also a mezzanine floor which provides a packaging and storage area underneath. The whole factory area is well ventilated and the production rooms are airconditioned.’’
Binning says the Auckland Airport Business District is a rapidly growing commercial hub and the Airport Authority, which i s a major land owner in the area, has a 10- year plan in place that will see Airport Oaks progress further as one of Auckland’s premier industrial areas.
‘‘ This property is surrounded by many of Australasia’s largest logistics and customs companies. As a quality building in a high growth area, this sale represents an exceptional opportunity,’’ Binning says.
Soroka says the building offers good cash flow security for a significant asset in a high risk environment. ‘‘ It is a rare to have a property with such a high- quality blue chip tenant covenant like this one with Air New Zealand come to the market.’’
He says the property has excellent access to local infrastructure and is less than five minutes’ from Auckland International Airport and motorways into the city and environs.
‘‘ With 155 secure car parking spaces and very good access to Rennie Drive, Air New Zealand House is clearly visible from the road. With a Business Five zoning within the Manukau City Proposed District Plan, this offer presents a rare chance for a potential investor,’’ Soroka says.