Fully leased office building for sale
A fully leased office building anchored by a long-term government tenant is for sale in South Auckland.
Situated in the heart of Manukau’s office precinct, 22 Amersham Way is a four-level commercial building that is prominently positioned on a freehold corner site.
The building is occupied by five tenants with an average weighted lease term of 4.3 years, returning a net passing income of $708,636 plus GST per annum.
Colliers International’s Capital Markets and Investment Sales teams is marketing the property for sale by deadline private treaty closing at 4pm on Wednesday 15 July, unless sold prior.
Matthew Barnes, director of Colliers’ South Auckland investment sales team, says the property comprises a multi-level commercial building with a net lettable area of 2,874sq m.
It is situated on an 854sq m freehold site with Business - Metropolitan Centre zoning, allowing for mixeduse development of up to 72.5m in height.
There are seven covered on-site car parks, as well as 24 car parks leased from Auckland Council.
Barnes says the property returns a solid split-risk income stream from a diverse tenant mix.
“The property is anchored by the Ministry of Justice, providing the security of a long lease to a government tenant.
“The remaining tenants include two tertiary education providers, NZSAF and Workforce Development, as well as market expansion services provider DKSH, and business consultancy company Duco.”
The Ministry of Justice occupies 949sq m on the ground floor and part of the first floor; Duco occupies 393sq m on the first floor; Workforce Development and DKSH occupy 430sq m and 332sq m respectively on the second floor; and the New Zealand School of Art and Fashion (NZSAF) occupies 770sq m on the third floor, as well as holding signage rights.
The leases have a mix of fixed, CPI and market rental reviews, with final expiry dates between December 2022 and December 2037.
Ronal Prasad, of Colliers’ South Auckland Investment Sales team, says the property stands to benefit from Manukau’s increased accessibility and exposure.
“Manukau’s growth is evident from the substantial amount of residential development underway in the area.
“New developments in the area include the 17-level Lakewood Plaza apartment building.”