Student village should pass investor examination
The Akoranga Student Village is for sale at 42 Akoranga Drive, Northcote.
The big Akoranga Student Village accommodation block adjacent to North Shore’s Auckland University of Technology (AUT) campus, is for sale with a long lease in place to the university.
“Investors can take confidence in the property’s exceptionally strong, government backed tenant covenant,” says Jimmy O’Brien of Colliers International who, with colleagues Peter Herdson and Tim Lichtenstein, is selling the big 7282 sq m site with seven buildings at 42 Akoranga Drive, Northcote, by deadline private treaty closing on May 29 - unless it sells earlier by negotiation.
“Given the significant investment that has gone into the Akoranga Campus infrastructure - which this property services - there will be a long, ongoing need for this facility for many years to come,” O’Brien says.
“The accommodation block is running at 100 per cent occupancy demonstrating that demand for this student village is extremely robust.”
O’Brien says the Crown land property is a leasehold tenure on a peppercorn rental of $1 per year fixed throughout the term of the lease.
He says the buildings are leased by AUT on a current 25 year term that includes two 33 year rights of renewal and has built in rental growth to either Consumer Price Index (CPI) or market rates.
The buildings have a total net lettable area of 4093 sq m and generate a net annual rental income of $1,384,274.
“The strong fundamentals of this property mean investors can expect a long term cash flow with rental growth from a reliable tenant in an extremely strategic location next to the AUT campus,” says O’Brien.
AUT is New Zealand’s third largest university with a growing roll of more than 26,000 New Zealand and international students across three campuses undertaking both undergraduate and postgraduate studies across a wide range of academic and professional disciplines.
Seven accommodation buildings are included within Akoranga Student Village.
The Akoranga campus includes a $7 million sports and recreation centre, a training facility that has been an integral part of the community and facility for more than 30 years, and a new, multi-lecture theatre complex with an open foyer space developed for exhibitions and conferences.
The Akoranga Student Village, completed in 2002, consists of six weatherboard accommodation blocks and one administration block - all with concrete slab flooring, aluminium joinery and long run roofing iron.
There are 40 five and six bedroom apartments within the several two-storey and three-storey student accommodation blocks which also contain common rooms and laundry facilities.
Herdson says the facilities have been constructed to a very high standard, and all blocks have just undergone a complete re-cladding to New Building Standards (NBS).
“The apartments are accessed by a carpeted communal foyer with accompanying entrance canopy that provides direct access to the ground floor modules and to an internal staircase for the upper level ones.
“A typical five-bedroom module includes a good sized, carpeted lounge, a smart, functional kitchen and a passageway linking to the bedrooms and two bathrooms.”
A manager’s unit comprises a spacious lounge and dining/kitchen area with a master bedroom and ensuite, as well as two bedrooms, a bathroom and laundry.
Because it is close to the AUT campus the property has a Special Purpose 2 Educational zoning which only applies to two other major tertiary educational campuses on Auckland’s North Shore.
Lichtenstein says the student accommodation village sits at the expansive, northern end of the campus with excellent street frontage onto Akoranga Drive and includes 80 car parks.
“It is only a few hundred metres from the Akoranga Drive on and off ramps allowing quick access to Auckland’s motorway network, and making it readily accessible to both the North Shore and the CBD - just a 10 minute drive away.
“Other facilities and features nearby within a very short commute include Takapuna township and Shore City Shopping Centre, multiple sports grounds and complexes, North Shore hospital and numerous East Coast beaches.”
From left to right; Jimmy O’Brien, Peter Herdson and Tim Lichtenstein of Colliers International.
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