Fully leased office building in Greenlane Corridor
Unisys House at 650 Great South Rd, Ellerslie.
The high profile Unisys House in Auckland’s popular Greenlane Corridor is for sale fully leased to government and international corporate tenants.
“This building at 650 Great South Rd, Ellerslie, will be considered a trophy investment holding in a market characterised by a scarcity of well-leased commercial properties in good locations,” says Jonathan Ogg of CBRE who with colleague Bruce Catley, is marketing it for sale exclusively by an international deadline private treaty campaign closing on Thursday November 12.
“Almost 40 per cent of the four level building’s lettable floor area is leased to two New Zealand Government agencies making the asset a perfect investment for buyers looking for income security. The remainder is leased to Unisys, Fletcher Construction and Health Alliance,” says Ogg.
He says the building earns significant and diversified annual net passing income of $2.6 million backed by excellent tenant covenants.
“Within this asset class and price bracket, the quality of construction and its prominent position complement the building’s compelling investment qualities,” Ogg says.
The 8350 sq m building has large flexible floor plates of over 2000 sq m each and comes with 299 on site car parks which will add to its appeal to potential tenants in event of a future vacancy.
The building was constructed in 1997 and has a New Building Standard (NBS) seismic rating of A-plus. A three level podium car park was added in 1999 to provide additional parking to complement the original basement car park.
Ogg says building has been substantially refurbished and is well presented throughout, with a marble foyer and timeless, modern design. “Several of the tenants have invested in high quality fit outs of their own,” he says.
The ground floor is mainly leased to global information technology company Unisys, with the remaining space occupied by Fletcher Construction. Level One is fully occupied by a large government department. Health Alliance, which delivers non-clinical services to New Zealand’s 20 district health boards, is on Level Two. The top level is shared between Fletchers and a second government department.
An evening view of Unisys House.
Ogg says there is also potential to add value to the property by increasing its future income stream. “The average office rents in the building are about $240 per square metre and this raises the prospect for future rental growth considering that rents for new buildings in comparable locations are often well above $375 a square metre.”
Catley says CBRE expects strong demand for the property..
“Fully leased office assets in this central location on a main arterial route with large floor plates and an excellent car parking ratio are rarely available on the open market,” he says.
“The property’s fundamentals will place it firmly on the radars of both local and international buyers. With competitive finance on offer, buyers will view the timing as excellent to secure this building given the expected yield differential to a new asset.
“For offshore buyers, its attributes will also make it desirable at a time when the investment spotlight is broadening its focus from Asia and Australia to include New Zealand.
“The property’s strong investment profile is supported by a central Auckland fringe office market typified by limited stock availability, decreasing vacancy rates and continuing pressure from occupier demand at the premium and A-grade end. These trends have made both local and international buyers sit up and take notice of investment offerings in the sought-after Greenlane Corridor.”
Catley says the property occupies a highly visible site on Great South Rd. “The building is within a well-established cluster of low to medium rise commercial buildings that is commonly referred to as the Greenlane Corridor.
“The area has excellent transport connections and is close to the Ellerslie Panmure motorway interchange giving ready access to the State Highway One north-south motorway.
“The Greenlane Corridor is very popular among businesses because of its central Auckland location, higher car parking ratios than the CBD and the availability of rail and bus services that are appreciated by staff.. Ellerslie train station is just 200 metres away.
Catley says Ellerslie’s town centre with its cafes, banks, restaurants bars and other services is accessed via Sultan Street and Kalmia Street connections over and under the motorway.
“The property is also adjacent to Goodman’s Central Park Corporate Centre, which offers more amenities,” he says.
Jonathan Ogg, (left) & Bruce Catley, (right) of CBRE.