A multi-tenanted commercial property in Albany, Auckland – which houses a high-spec warehouse and office building and a popular Italian bistro among other tenants – is being sold to investors by KCL Property under a proportionate ownership scheme.
Subscribers may apply to purchase one or several of the 138 interests, which are available at $50,000 each through the selling agents, Tim Lichtenstein and Charlie Oscroft of Colliers International. Each title represents an equal proportion of the registered freehold title on the land and buildings.
A 12.2% projected pre-tax annual return is on offer, made up of a combination of cash return and debt repayment.
Lichtenstein and Oscroft, who are marketing the syndication on behalf of KCL Property, will leverage Colliers’ expertise in the syndications market as well as the agency’s extensive database to help ensure successful take-up of the offer.
Bryce Barnett, managing director of KCL Property, says he expects the syndication to be popular among investors, owing to the multi-tenanted nature of the property, which gives important diversification of income.
“This offering presents a good opportunity for individual investors to buy into well-located, fully tenanted commercial properties which constitute a ready-made diversified portfolio wrapped up in each unit.”
PROPERTIES & TENANTS
The property, at 265 Albany Highway, comprises a modern office and warehouse facility; a popular restaurant; and a childcare centre.
The 4080sq m office and warehouse was constructed in 2005 for the tenant, Good Health Products, a family-run business which contributes $777,570 a year in net rental income. Good Health holds a 10-year lease expiring in March 2016, with two rights of renewal of eight years each.
Lichtenstein describes the warehouse and its large yard as “a spectacular facility”.
“The building is constructed to an exceptionally high standard and is in excellent condition. It offers climate controlled, insulated, clean airspace technology under a 7.8m stud at the knee.
“The ample 4,500sq m of yard space – rarely seen with large-format warehouses in this area – offers the potential for Good Health or any future tenant to increase the size of the building by approximately 1800 sq m.”
Good Health is a family-owned company founded in 1989 which manufactures natural health supplements. The warehouse complex houses the company’s offices, a sophisticated manufacturing plant and a distribution centre.
Adjacent to the warehouse is a 249.7sq m restaurant and bar which was opened last year.
The tenant, Caffe e Cucina, holds an eight year lease dating from October 2010, with the right to renew for four further four-year terms. The premise comes with 27 car parks and returns $123,906 plus GST annually. Rent is subject to a review every two years.
Oscroft says the restaurant is run by stable, established operators and is known as Albany’s premium dining location, as well as one of the North Shore’s best Italian restaurants. It has also been nominated for ‘best social meeting venue’ in the Corporate Events Guide this year.
“It’s a thriving place where the community goes to meet and dine. The restaurant and bar are always full with business lunch groups and evening social gatherings.”
Since construction, the building has been altered to better provide for the restaurant’s customers and the tenant has requested further expansion, Oscroft says.
“A sheltered outdoor dining space was recently added and construction is about to commence on a second covered smokers’ area. The current high standard of internal and external decor will be maintained.”
Other tenancies on-site include Junior Junction Childcare, a STIHL shop and Limelight Dance Studios.
LOCATION
Lichtenstein says the properties lie in the immediate vicinity of the majority of new housing development that has been built in Albany within the past five years, providing a very large catchment area for the restaurant and bar.
“It’s also adjacent to the well-established North Harbour business precinct, around one kilometre from the Upper Harbour Highway onramp and three kilometres from Albany Village. The Hobsonville Deviation motorway project will also benefit the area when it opens later this year.”
Among the properties’ neighbours are Albany Junior High and Kristin schools, the North Shore golf course and Unitec Institute of Technology.
COLLIERS INTERNATIONAL’S SYNDICATIONS BUSINESS
The 265 Albany Highway syndication is part of a national strategic focus by Colliers International to drive an increase in market share of the New Zealand syndications business. It follows the successful allocation of all 173 units in the building housing Unitec Institute of Technology, also in Albany.
“We closed the Unitec offer after only three weeks of marketing, with all units taken up in what proved to be an extremely popular offering and we expect equally strong demand for this latest offering from KCL Property,” Lichtenstein says.
“With over 350 Colliers International commercial property staff in 13 offices in New Zealand, our distribution channels are well-positioned to co-ordinate and tap into the proportionate ownership market and target increased business nationally.”
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