Unitec Institute of Technology’s North Shore campus at 10 Rothwell Avenue, Albany, Auckland is being sold to investors by Commercial Investment Properties Limited under a proportionate ownership scheme.
Subscribers may apply to purchase one or several of the 173 units, which are available at $50,000 each through Tim Lichtenstein and Charlie Oscroft of Colliers International. Each unit represents an equal proportion of the registered freehold title on the land and building.
Strategic focus
Colliers International chief executive Mark Synnott says the Unitec offering is part of a strategic commitment to building the company’s proportionate ownership business nationally, bolstered by the expertise and database support located in its Auckland CBD office. “Rather than handling proportionate ownership sales on a reactive basis regionally, we have decided to make a strategic focus at a national level to proactively drive an increase in our market share of the New Zealand syndications business.
“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,” says Synnott.
Colliers International has marketed the sale of a number of syndicated properties around New Zealand over the past three to five years, most recently the Farmers building in Hastings and the Airways Building in Christchurch.
Unitec opportunity
A projected 10 per cent pre-tax annual cash return is on offer for subscribers to the Unitec syndication, plus income growth every second year through rent reviews to the consumer price index plus two per cent. The property is fully let to Unitec on a new seven-year lease which commenced in July 2011, with rights of renewal extending the term to 16 years. Total net rental is approximately $1,230,000.
Lichtenstein says he expects the Unitec scheme to appeal to existing syndication owners from Auckland and around the country, as well as individuals and small family trusts.
“Investors who have bought into syndication offerings previously and are looking to diversify into the education property sector will likely be interested in the property, likewise investors from outside Auckland who are looking to buy into the market here,” he says.
Oscroft says the hassle-free nature of the scheme will be a big drawcard for many buyers. “The management contract is in place and the property is fully tenanted by a stable, long-term occupier, giving purchasers a ready-made commercial property investment which they can put away, forget about and enjoy the income.”
Property & location
The modern, well-presented industrial property comprises a large 10,215sq m floor area on a 1.4 hectare site. Two levels of offices are at the front of the building, with a large high-stud warehouse to the rear. Over 230 on-site car parks and attractive landscaping make up the exterior area.
The property is located within the North Harbour Industrial Precinct, an established industrial area in the expanding North Shore urban region. Rothwell Avenue connects the precinct with Albany Highway and Albany town centre.
Oscroft says Unitec had temporarily established a campus in Takapuna while it researched the most suitable location for its new North Shore campus. Owing to its demand and forecast growth, Unitec selected the Rothwell Avenue location because of its efficient access to both the northern and western motorways, extensive public transport links and the quality of the building.
“This site and its central North Shore location is well positioned for Unitec’s planned growth,” he says.
Tenant
Unitec is NZ’s largest institute of technology, a member of the International Association of Universities and educates over 23,000 students from more than 80 countries at its four Auckland campuses. Unitec reported an $8.8m surplus in the June 2011 financial year.
Its North Shore campus is intended to give residents, industry and high schools throughout the North Shore and Rodney district access to vocational education and training. It offers students industry-relevant certificate and diploma qualifications to help them to get a job, apprenticeship or continue training.
Courses offered include building technology, computing and information technology, design, landscape architecture, animal care and transport technology.
The closing date for subscribers wishing to participate in the offering is Friday 25 November 2011.
Print this article or Email to a friend