Education anchored building given top marks
The standalone office building for sale at 621 Great South Rd, Manukau.
A stand-alone office building which is home to an education provider, a law firm and a recruitment agency is for sale on a high profile corner site in the centre of Manukau.
“This freehold investment property represents a strategic holding in a high demand location,” says Peter Kermode of Colliers International who, with colleague Jeremy Barnett, is marketing 621 Great South Rd for sale by tender closing on November 19.
“The building’s position on the corner of Great South Rd and Cavendish Drive is arguably one of the best in Manukau,” Kermode says.
“It’s a very highly visible spot on a big intersection with easy access to motorways and only a short walk to the Manukau retail area.”
The three level property encompasses a net lettable area of 1717 sq m within two levels of offices and off street parking for 61 vehicles in the basement and street-level parking areas.
“The building is modern and well maintained, providing functional office space with plenty of natural light,” Kermode says.
Three tenants generate total net annual rental income of $380,436 with rent reviews giving potential for future income growth.
The principal tenant in the fully leased building is Academic Colleges Group (ACG) which operates New Zealand Career College, a tertiary education institution.
ACG occupies most of the ground floor and part of Level One. “It is a well-established and leading tertiary education provider presenting the prospect of long term occupation with a stable cash flow,” says Kermode.
“ACG makes an excellent anchor tenant for the building. The organisation moved in to the property earlier this year and committed to a new six year lease.”
An elevated view of the office building depicting its strategic Manukau setting.
The group owns and operates 15 preschools, schools and tertiary colleges in New Zealand, as well as one in Vietnam and one in Indonesia – educating around 12,000 students and employing over 1000 staff.
Barnett says law firm Inder Lynch occupies the remainder of Level One and has operated from the property since 2004. “Inder Lynch recently took a six year lease renewal, extending the current term to 2022, which demonstrates the firm’s ongoing commitment to the property.”
Geneva Elevator occupies the road frontage ground floor retail tenancy which was previously home to a Video Ezy outlet.
“The company’s lease expires in 2017 and ACG has first right of refusal over the space when it becomes available,” says Kermode. “If ACG decided not to take this space, it would appeal to a broad range of tenants looking for high profile ground floor tenancies in Manukau with good parking immediately out front.”
The building’s 2574 sq m site is opposite Auckland University of Technology (AUT) and near The Warehouse, Manukau Supa Centa, Manukau Institute of Technology and the Westfield mall.
Barnett says the Manukau town centre has become a recognised tertiary education precinct in recent years and now serves South Auckland’s population with a wide range of education and training options from a variety of providers.
“The Auckland Institute of Technology and Manukau Institute of Technology have recently opening large campuses in the area and both organisations have plans for expansion.
“These large institutions have provided a strong education ‘anchor’ that has prompted other providers to cluster around them, creating an unofficial tertiary precinct,” Barnett says.
“ACG is one of a number of smaller, but substantial, tertiary education providers to open in central Manukau’s tertiary hub. The location is well suited to educational institutions with students having access to much lower-cost housing than what is available in the Auckland CBD. There is also a great variety of retail and services within a short walk of this property, including cafés, convenience food outlets, a gym, supermarkets and childcare centres.
“Manukau also has excellent motorway access, which has helped it become one of the most popular commercial areas in Auckland containing a well-rounded mix of occupiers and a full-service town centre that serves a large and growing surrounding population,” Barnett says.
Peter Kermode (left) and Jeremy Barnett (right), of Colliers International.
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