Dual tenant ‘trophy investment’ on the Shore

5:00 AM Saturday June 24, 2017 True Commercial

InterMed Medical Ltd occupies the front of the Apollo Drive property, while Travel Marketing Ltd occupies the rear. Photo / Supplied

A trophy North Shore industrial investment with an established national tenant on a long-term lease is for sale through Colliers International and NAI Harcourts.

The 5254sq m freehold investment at 71 Apollo Drive, Mairangi Bay, is for sale by deadline private treaty closing July 18, unless sold earlier.

Matt Prentice of Colliers International says it is an opportunity to secure a solid dual tenancy investment with future-proofed growth potential.

“This immaculate industrial investment is in the tightly held Interplex Business Park — one of the most sought-after industrial and commercial areas of Auckland’s North Shore,” he says.

“The property has solid fundamentals across all key investment criteria — a long-term lease, large freehold site, prominent location, high-quality modern warehouse, outstanding tenant covenant, and future add-value potential.”

The General Business-zoned property was purpose-built for established medical supply company InterMed Medical Ltd in 2006.

The company occupies the main tenancy at the front of the property, while secondary tenant Travel Marketing Ltd occupies the rear.

Prentice says InterMed is signed to a new eight-year lease, commencing on July 1. “The company will take over the entire property once the secondary tenant’s lease expires at the end of June 2019,” he says.

“InterMed’s leases are conveniently aligned to expire at the same time in June 2025, after which the company has a four year right of renewal, taking the full tenancy to 2029.”

Prentice says the property earns $654,878 a year in net rent.

“With market rent reviews every two years, it offers all the gains of built-in rental growth, as well as all the benefits of a stable long-term lease.”

Shoneet Chand of Colliers International says the property comprises a modern standalone building with a net lettable area of 3,765.4sq m.

“This high-quality warehouse and office facility is set up to allow for the future growth of InterMed’s business,” he says.

“Long-term flexible tenancy options also exist, with the site designed and built to house dual tenancies.”

Chand says the high-profile site has prominent street frontage on the eastern side of Apollo Drive — the principal thoroughfare linking Rosedale Rd and Constellation Drive.

Neighbouring tenants include Wallace Cotton, Douglas Johnson, Hi-Tech Packaging, Anzor Fasteners and Penguin Books.

“The surrounding developments are mostly new or near-new office parks, single occupier industrial buildings, and multi-unit commercial/industrial developments of a high quality,” Chand says.

Andrew Bruce of NAI Harcourts says the Interplex Business Park offers good access to major transport links, amenities, and most North Shore suburbs.

“The area is regarded as one of the best industrial precincts on the North Shore, and has attracted tenants and developments of above average quality,” he says.

“There is good access to the motorway with the Constellation Drive and Greville Rd interchanges nearby.”

Bruce says the property is built to 100 per cent of seismic standards. The warehouse has a stud height of about 10m and is accessed by multiple roller doors.

InterMed occupies 2775.7sq m including two levels of offices at the front of the property and a high-stud warehouse to the rear.

The 598.9sq m ground floor office features a central open plan area with partitioned offices around the periphery. There is a well-appointed staff lunchroom, which opens to an outdoor courtyard area.

Bruce says the 619.7sq m first floor also features a central open plan area, peripheral offices, and amenities.

“A stylish boardroom, with an adjacent kitchenette, overlooks the front carpark below.”

Access to the 1415.5sq m warehouse is via a motorised roller door, Bruce says. “The space is clear span and includes a small dispatch office plus a separately partitioned cleanroom. Numerous translucent roof panels provide an excellent level of natural light.”

InterMed has access to 49 on-site car parks, while Travel Marketing is allocated 11 parks.

Rob Meister of NAI Harcourts says Travel Marketing occupies a 989.7sq m tenancy at the rear of the site. It is comprised of a 712.5sq m high stud warehouse and a 209.5sq m first floor office.

“A well-appointed staff lunch room and male and female amenities are available on the mezzanine level, extending into the warehouse.”

Access to the office is via a lobby and stairwell, while the warehouse is accessed via a motorised roller door.

“Like the adjoining tenancy, there is abundant natural light thanks to translucent roof panels.”

Prentice says anchor tenant InterMed Medical is a privately owned company established in New Zealand in 1980 by professionals working in the healthcare industry.

The company has grown strategically since 2010 with the acquisition of five companies and expansion into the Australian market in 2013.

“InterMed partners with a broad range of international and local suppliers to access well-respected brands and quality products,” Prentice says.

“The company supplies products and technology across a range of healthcare services, and has recently expanded into other sectors including industrial, food services, safety and horticulture.”

Travel Marketing Limited, trading as Cruise World, is an independently owned and operated cruise wholesale and representation company established in 1994.

The company has a nationwide market presence and offers wholesale packages and full reservation services staffed by an experienced team.