Add-value Greenlane office investment

6:38 PM Friday October 6, 2017 True Commercial

The 4129sq m freehold property at 323 Great South Rd, Greenlane. Photo / Supplied

A high-profile office building on Auckland’s Southern Corridor is for sale as an add-value investment with long-term redevelopment potential.

The 4129sq m freehold property at 323 Great South Rd, Greenlane, is being marketed by Colliers International’s Gareth Fraser and Simon Child. Offers, by way of deadline private treaty, will close on October 26, unless it sells earlier.

Fraser says it’s an opportunity to acquire a well-located property in one of Auckland’s most desirable office locations.

“This solid investment comprises a two-level building with 3434sq m of office space and covered basement car parking,” he says.

“The ground floor is fully leased to New Zealand construction firm, Fletcher Building, while investors have the chance to immediately add value by leasing the vacant first floor.

“With its substantial size, the property offers investors and owner-occupiers a strategic land holding with future redevelopment potential.

“The property’s proposed Business Mixed Use zoning under the Auckland Unitary Plan also allows it to be redeveloped in the long term for residential use.”

Fraser says the property, at the city end of the Greenlane commercial precinct, is well located on the city fringe and close to major arterial routes.

“The property has 82.4m of street frontage to Great South Rd, offering excellent exposure to high volumes of passing traffic.

“Great South Rd is a major arterial route that connects Auckland’s western and southern suburbs to the commercial precincts of Newmarket, Greenlane and Ellerslie. It has multiple points of access to State Highway 1.

“The road forms a key part of the Southern Corridor, which has office vacancy rates at near-record lows - making it one of Auckland’s most sought after commercial property precincts.

“Many bus routes service the property, while the Ellerslie train station is a short walking distance.”

Child says the property has a net passing income of $512,540 per annum plus GST, and could return $868,540 per annum plus GST once fully leased.

“Developed in 1987 and extensively refurbished in 2014, the building is constructed of reinforced concrete foundations and floors, and supported by concrete columns and beams,” he says.

“The exterior has a sprayed texture finish, with tiled roofing on the sides and long-run galvanised iron roofing at the top. Both office levels also have decks fronting Great South Rd.

“The main entrance is via a spacious and well-designed, light-filled foyer with a high stud atrium.”

Child says access between the basement car park and office floors is via a stairwell or an Otis 11-person lift.

“The car park, secured by a roller door, has 97 spaces. In addition, there are three uncovered parking bays in the front available for visitors and contractors.”

Child says the recent refurbishments, worth some $4m, were carried out by Fletcher Building.

“Seismic work included new internal portal frames and extra foundations for the shear walls, bringing the building’s earthquake rating up to 67 per cent of the new building standard,” he says.

“The fit-outs on both office floors were demolished and completely replaced with new suspended ceilings, lighting and floor coverings, while the amenities on both levels were refloored. A second bathroom with a shower was constructed in the level one tenancy.”

Child says a new mechanical air conditioning system, and upgraded fire and security systems, were installed.

“Other work included repainting the exterior of the building, repairing the tile stairs leading to the main entry, improving the landscaping, and installing new feature panels in the foyer.”

The current owner commissioned plans to upgrade the facade of the building to modernise it and these plans are available upon request.

Child says the property’s Business Mixed Use zoning allows for a flexible mix of residential and commercial activities with buildings of up to 16.5m are permitted.

“With many residential properties to the rear, there is a chance to redevelop the property for residential use.”

Tenant Fletcher Building was first established in the early 1900s and has grown over the past 100 years to become one of the largest listed companies in New Zealand.

It has some 20,000 employees and operates in more than 40 countries.