Manurewa property has Government tenant

5:00 AM Saturday October 22, 2016 True Commercial

The roomy interior of the building, which is in the heart of Manurewa.

A large South Auckland commercial building fully occupied by a long standing Government tenant is up for sale with a new six-year-lease in place.

Located at 12 Selwyn Rd, Manurewa, the 1201sq m building on a substantial 2331sq m landholding has been occupied by the Ministry of Social Development since it was constructed in 2001.

The ministry signed a new six-year lease in March 2016, with three three-year rights of renewal, which is currently generating gross annual income of $329,000.

Featured in Bayleys’ latest Total Property portfolio, the offering is being marketed by Nicolas Ching and James Chan of Bayleys’ international division in conjunction with Peter Migounoff, Bayleys South Auckland. The property is up for tender, closing November 3, unless sold earlier by negotiation.

“The property is in the in heart of Manurewa Town Centre, which works particularly well for the ministry because it is opposite Manurewa’s transport hub,” says Ching. “This is a large park-and-ride facility and bus interchange which links with many local services, and a train station on the southern line which connects Pukekohe and Papakura with Britomart.

“On the other side of the station, via a pedestrian foot bridge across the railway line, is the main entrance to Southmall Shopping Centre which has a large public car parking area.

“The Selwyn St property also has good motorway access and 32 secure car parks in the basement for Ministry of Social Development staff and clients.

12 Selwyn Rd 04.jpg

The roomy interior of the building, which is in the heart of Manurewa.

Neighbours include McDonald’s, KFC, ASB and Pizza Hutt, cafes, a public library and schools as well as trade services businesses. Migounoff says the surrounding residential area is growing fast and is set for further expansion with a new Mixed Housing Urban zone introduced around the town centre under the unitary plan and a block of land surrounded by Maich Rd, Northcrest Way and Great South Rd changed from a Single House zone to a Terrace Housing and Apartment Building zone.

“This will allow for increased residential density which feeds demand for retail and other services,” he says.

Chan says the large rectangular shaped freehold site lends itself to possible future development because of its Town Centre zoning under the new unitary plan which allows building up to a height of 24.5m as well as its good access off Selwyn Rd which is also one of the main points of entry to the park-and-ride facility. The zone would potentially allow a building up to six storeys high on the site subject to obtaining the necessary consents.

“This well presented, fully air conditioned premises is modern and spacious with a good quality fit out,” says Chan. “It also has a warehouse storage area in addition to its basement parking as well as a small mezzanine area with kitchen that is used as a staff lunch room.”

Under the terms of the gross lease, the tenant pays for all the building utility services it consumes, such as gas, electricity, water and telephones, while the landlord pays all outgoings for the land and the building including rates, insurance and grounds and building maintenance. Ching says those non-recoverable property outgoings are currently approximately $40,000 per annum plus GST.