A ‘blooming good property’ near airport

5:00 AM Saturday September 10, 2016 True Commercial

New Zealand Bloom, the tenant at 14 Andrew Baxter Drive, is the only Kiwi florist with off-shore offices in the US and Japan.

Brokers marketing a property at 14 Andrew Baxter Drive — in Auckland’s Airport district— rate it an excellent opportunity for investors.

The 2023sq m freehold property is for sale by auction on October 5, unless sold earlier by negotiation.

Brad Johnston, who along with Colliers International colleague Paul Jarvie, is marketing the property says the strong tenant covenant of this property is a major draw-card, considering the unprecedented industrial property shortage in Auckland.

“The property, with a net lettable area of 1182sq m, is currently occupied by New Zealand Bloom, a Kiwi floral company which was founded in New York of all places,” says Jarvie.

The property returns $160,000 net per annum with an initial six year lease and three rights of renewal every three years.

“The building has been refurbished and has an excellent road profile. An investment like this offers guaranteed growth, and is suitable for an astute investor looking to expand, or begin, their portfolio with the rent increasing 2.5 per cent per annum,” says Johnston.

The property comprises a 729sq m warehouse, split into two areas with two levels of recently refurbished office totalling 453sqm, as well as associated boardroom and amenity areas.

“The warehouse is situated to the rear of the site with a stud height of 4.2m, rising to six metres at the apex. It is built on concrete floors and it can be accessed by two dual roller doors,” says Jarvie.

The A-grade offices, which face Andrew Baxter Drive, include an open plan layout, and partitions. The remainder of the site is concrete sealed yard and car parking with security fencing.

Jarvie says the fundamentals are in place for a solid investment opportunity, especially considering the location and the fast-growing industrial property market.

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With its strong tenant, the 2023sq m freehold property is a stand-out considering Auckland’s unprecedented industrial property shortage.

“It’s a strategic industrial location for business operators who want the reach and connectivity it offers. New Zealand Bloom operates out of the Airport Oaks industrial precinct because the area is well established,” says Jarvie.

“Just looking around you can see a large number of national and international firms with a number specialising in imports and exports, distribution and freight forwarding, DHL, DB Schenker, Hellmann Worldwide Logistics, Freedom Furniture and Maui Camper Vans, to name just a few of the big internationals,” he points out.

The property is located about 3.6 km north of Auckland’s International Airport and a 25-minute-drive from the Auckland CBD.

Since its beginning in New York, New Zealand Bloom has become a global marketer of flowers, with offices in Auckland, Los Angeles and Osaka.

It supplies flowers for luxury events around the world, and coordinates shipments for big and small cities.

It is the only floral company in New Zealand to have off-shore offices, and according to Jarvie, makes for an excellent tenant that has been in business for over 20 years.

Johnston says the property was a strategic choice for the tenant, which operates to high health and safety standards.

“The building is 100 per cent of the New Building Standard in terms of seismic upgrading, and is zoned Business 5 currently, and Light Industry under the Unitary Plan, which will be operative within days,” adds Johnston.

The Business 5 zone is characterised by low to medium intensity industrial activity. These are generally the older purpose build industrial areas of the Auckland isthmus, and often contain large, land extensive traditional industrial operations.

“The zone has been designed to cater for activities which are unable to locate in the other mixed use business zones due to amenity constraints,” Johnston points out.

“This means the amenity levels on factors such as noise, dust or odour control will be considerably lower than those for Business 1-4 zones,” he adds.