ANZ business centre an Albany landmark

9:54 AM Saturday September 6, 2014 Colin Taylor

Good wide horizontal view of a five level commercial building for sale at 9-11 Corinthian Drive, Albany.

A prominent five level commercial building in the rapidly developing Albany City precinct, on Auckland’s North Shore, is being billed as a premium investment backed by strong tenants in a top location.

“For investors looking for income security, it doesn’t get much better than this,” says

Jason Seymour of Colliers International who, with colleagues Andrew Reed and Shoneet Chand, is selling the property by deadline private treaty closing on Thursday October 9.

The building at 9-11 Corinthian Drive, Albany, is featured in Colliers’ latest National Portfolio magazine and is occupied by major corporate and government office tenants along with several well known retailers.

Seymour says the property offers a very strong, diversified income stream with ANZ, Lumley Insurance, the Department of Labour and the Ministry of Justice occupying the office floors; and Pizza Hut, BurgerFuel and Nando’s on the ground floor.

He says two major international financial institutions and the New Zealand Government provide over 71 per cent of the property’s total current net income of $2,004,955.

“Add to that the solid covenants provided by three well-established and popular food chains and this is an absolutely top-class investment offering.”

Seymour says the ANZ Business Centre is a local landmark in the heart of Albany’s new commercial hub.

“It is an attractive, modern building that is well known in the local area and provides great brand exposure for ANZ which holds naming rights; and for the the retail tenants on the ground floor. It is a strategic and high-profile spot in one of the fastest-growing localities in the greater Auckland region.”

The 5736 sq m building contains three levels of commercial tenancies, one of retail and car parking; and an additional level of car parking. A total of 216 car parks are on-site – providing plenty of parking for the building’s staff, visitors and customers.

The building occupies a 5579 sq m freehold site, was constructed in 2004. Seymour says a recent detailed engineering evaluation has shown it to be structurally sound, with an A grade seismic rating.

Reed says the building’s design offers entirely separate office and retail elements, with two road frontages and dual street access.

“The building is ideally oriented with the office foyer fronting Corinthian Drive and having its own entrance. The retail frontages are on Mercari Way opposite the Albany Mega Centre and adjacent to further retail provision.”

The various tenancies provide a weighted average lease term of 5.3 years, with structured rental growth provisions in many of the leases.

ANZ has just signed a new nine year lease and occupies 2144.53 sq m across levels three and four in the building. Also on level four is Lumley Insurance taking up 666sq m of floor space, while the Department of Labour and the Ministry of Justice occupy 1576 sq m of office space on level five.

“The tenants enjoy high quality fit outs and a convenient work location within a fast-growing office and retail hub,” Seymour says. “The Albany area has proven itself as an excellent place to do business over recent years, with rapid development and very low commercial vacancy rates reflecting the demand among occupiers for premises here.”

The latest research by Colliers International shows a low 7.6 per cent vacancy rate across office property in Albany with overall office vacancy on the North Shore at a long term low of 7.5 per cent.

Chand says several major owners and developers have recognised the potential for further commercial development in the Albany basin based on expected future population growth.

“Just metres from this property Goodman is undertaking a major development of 12 hectares of land for its proposed Orchard Park commercial precinct and this is attracting well-known business owners and tenants. Further development is also underway on land north of the Westfield shopping centre, including a large new Countdown supermarket, alongside retirement, residential and retail projects.”

The recently completed Foundation retail centre is also home to several well-known national tenants in an area hosting the sprawling Massey University campus and North Harbour Stadium.

“The wider Albany City development is a major project which has been planned as a dynamic and sustainable sub-regional centre, aiming to enhance the economic and social wellbeing of the area as well as providing for future population growth,” Seymour says.

“The surrounding area is designed to include a variety of living, employment, commercial, retail, community, civic and recreation environments. Distinctive high quality urban design is provided for, including a ‘green network’ to create an attractive urban environment.”

Chand says that by 2021 it is estimated that 15,000 people will be working in Albany City with local population growth still continuing apace.

“Expected population growth rates in Albany are significantly ahead of projections for both the Auckland region and the North Shore, which in itself is one of the region’s fastest growing areas.”

He says the wider Albany Basin is expected to be the major recipient of the North Shore’s projected population increase over the next 40 years, creating significant future demand for commercial and retail developments in the Albany City area.

Higher-density housing is also planned for Albany City itself, with 4000 people likely to be living there by 2021.

Chand says motorway access, dedicated bus lanes and a large ‘park & ride’ bus terminal further enhance the area’s accessibility for commuters and shoppers.