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Diverse mixed-use investment at 229 Dairy Flat Highway in Albany

Diverse mixeduse investment at 229 Dairy Flat Highway in Albany 1536x1040

A substantial mixed-use investment property in the heart of Albany Village

A substantial mixed-use investment property in the heart of Albany Village is for sale with a diverse range of tenants providing exceptional covenant and nearly $1.9 million in net annual rent.

Located at 229 Dairy Flat Highway, the property comprises four separate buildings on a large 1.04ha freehold site with 156 car parks.

It is anchored by Massey University, Auckland Council and a recently completed Quest serviced apartment hotel, which together contribute 97 per cent of the property’s annual income.

The leases have a weighted average term of 10 years, making the property an excellent long-term investment proposition.

This is underpinned by the large site’s favourable Business Local Centre zoning, providing future development upside in a high-growth Auckland location.

Directors Shoneet Chand and Matt Prentice of Colliers International’s North Shore office have been exclusively appointed by listed entity PFI to bring the property to market.

It is for sale by way of deadline private treaty closing at 4pm on Tuesday 27 August, unless sold earlier.

“This exceptional investment is underpinned by multiple A-grade tenants, a strong weighted average lease term, a central North Shore location and clear future development potential,” says Chand.

“The property is superbly positioned within Albany Village, which is easily accessible via the Albany Expressway to the west and the nearby Northern Motorway.

“It is only 19km from Auckland’s CBD and within easy walking distance of New Zealand’s fourth largest shopping centre, Westfield Albany, and major new residential developments.

“The wider Albany area has been prioritised by Auckland Council for intensive development and growth. Nearby developments include QBE Stadium, Massey University and the Albany Mega Centre.

“With so much activity in the area, this is a chance to secure an outstanding investment with solid fundamentals and future upside.”

Vendor PFI is a property investment company that has been listed on the NZX since 1994. It has more than 5,000 shareholders and a portfolio of 94 properties valued at over $1.3 billion dollars.

Chand says PFI has invested significantly in the property, allowing a new owner to benefit from the capital improvements.

The property comprises a mix of purpose-built and repositioned buildings with a combined lettable area of 6,736.5sq m. All four buildings have A or A-plus IEP seismic ratings.

Prentice says the newest addition is the four-level Quest building, which comprises 38 units ranging from 26sq m studios through to 74sq m two-bedroom apartments.  

“All include modern kitchen and bathroom facilities finished to a high standard. The building also has secure undercroft parking for 18 cars.

“Quest adjoins a large single-level building occupied by Massey University. Built as a supermarket in the 1980s, it has since been converted for use as a design studio and workshop.

“Next door is a modern three-level office building with ground floor retail, including the Albany Village Library. It is occupied by Auckland Council, Massey University, a bakery and a sushi shop.

“The distinctive building has a clock tower by its entrance and adjoins an attractive plaza that is part of the site.

“The remaining premises is a one-level freestanding building that also adjoins the plaza. Originally occupied by a restaurant, it is now leased by Auckland Council as the Upper Harbour Local Board office.

“The attractive building has a sculptural curved roof, a schist clad feature wall and extensive glazing to the frontage.”

The property is on five leases with terms ranging from two to 19 years. These return $1,899,849 in net annual rent, with the next round of rental reviews between September 2019 to June 2021.

Auckland Council is the largest local authority in New Zealand, employing more than 11,000 people. It pays $242,501 in annual rent for 715sq m of space.

Massey University is New Zealand’s only university with campuses in multiple cities. Founded more than 80 years ago, it has 36,000 students including distance learners. It pays $985,450 for 4,408sq m plus 105 car parks.

Quest Apartment Hotels has over 150 properties in Australia, New Zealand and Fiji. It pays $615,999 in annual rent for 1,404sq m plus 18 car parks.

The bakery and sushi shop rent 108sq m and 62.5sq m spaces, paying $32,400 and $23,500 in annual rent respectively.

The Business Local Centre zone applies to a large number of small centres throughout Auckland, generally located in areas of good public transport.

The zone primarily provides for the local convenience needs of surrounding residential areas, including local retail, commercial services, offices, food and beverage, and appropriately scaled supermarkets.

Albany benefits from excellent access to the transport network including the Northern Motorway and the Northern Busway and its associated park and ride facility.

The Northern Busway significantly improved the travel times from Albany to the CBD and is a part of the Auckland Council’s Rapid Transit Network.

This connectivity will continue to attract further mixed-use and commercial developments in the Albany area.

Developments in the area include Mitre 10’s recently completed national support centre as well as the new 200-unit Rose Garden apartments and numerous retail, office and commercial developments.

Related Experts

Shoneet Chand

Director

Auckland North

Shoneet has been involved in selling investment property for over 13 years and since 2015 he has been a Director in the Investment Sales Team at Colliers International, specialising in Investment & Development Sales across the wider Auckland region.

Over the past 8 years he has been one of the most successful investment sales brokers in Auckland with a track record of significant sales second to none. He has had considerable experience in dealing with international purchasers and has recently completed several deals with investors out of Asia, Europe and the Middle East. He has been involved in a number of large land sales and portfolio sales, including divestments for well-known brands like Z Energy, The Warehouse & Bunnings.

Shoneet has been the top broker in his market for both 2014 and 2015 while also placing in the top 10 brokers nationwide again for Colliers in 2016. In 2017, Shoneet transacted over $260 million of property and was ranked 2nd in New Zealand.

He was the top broker at Colliers in the 2018 financial year and a finalist for the Commercial & Industrial Salesperson of the Year award, which is judged nationwide across all agencies. In both 2019 & 2020 he was again ranked in the top 5 brokers nationwide for Colliers and was involved in over $300 million & $325 million of sales in each calendar year. 

Over the past six years, he has transacted over $1.5 Billion dollars in sales.

Notable Transactions over $10m include;

  • 2-4 Fred Thomas Drive, Takapuna -   $60,850,000
  • 33 Corinthian Drive, Albany  -   $50,500,000
  • 229 Dairy Flat Highway, Albany -   $33,000,000
  • Todd Industrial Park – Wellington -   $33,000,000
  • 9-11 Corinthian Dr, Albany -  $27,340,000
  • 44 Taharoto Road, Takapuna -   $27,270,000
  • 279-301 Lincoln Rd, Henderson -   $27,000,000
  • 11 Coliseum Drive, Albany -  $26,700,000
  • The Warehouse, Albany -   $26,400,000
  • LEP Childcare Portfolio-   $20,775,000
  • Farro Fresh/ASB Constellation Dr -   $25,500,000
  • Kmart Te Rapa  - $23,750,000
  • 1-11 Parkway Drive -   $21,000,000
  • Noel Leeming, Wairau Park -   $19,000,000
  • 5 The Warehouse Way, Northcote -  $19,000,000
  • Rapid Labels – William Pickering Dr -  $17,300,000
  • 16 Dinning Road, Riverhead -  $16,500,000
  • 35-45 The Strand, Parnell -   $16,100,000
  • 44 Arrenway Drive, Albany -   $15,300,000
  • 151 Lincoln Road, Henderson -    $15,250,000
  • 51 Corinthian Drive, Albany -  $15,150,000
  • 7-21 Kawana Street, Northcote -  $14,998,100
  • 124 Bush Road, North Harbour -   $14,950,000
  • 550 Te Irirangi Drive, Botany -   $14,200,000
  • PlaceMakers, Albany -    $14,000,000
  • 24 Oteha Valley Rd Extn, Albany -    $13,300,000
  • 217-227 Archers Rd, Wairau Valley -   $13,250,000
  • 44 Arrenway Drive, Mairangi Bay -  $13,117,116
  • 6 Canaveral Drive, Mairangi Bay -   $13,000,000
  • 119-121 Onewa Road -   $12,750,000
  • 3 Monahan Road, Mt Wellington -  $12,680,000
  • 155 Wairau Road, Wairau Valley -   $11,500,000
  • 13 William Pickering Drive, Albany -  $11,400,000
  • 14-18 Lovell Court, Albany -  $10,500,000
  • WCDL Development on Onewa Rd -  $10,250,000
View expert

Matt Prentice

Director

Auckland North

Matt joined Colliers International in 2006 with a focus on mid to upper end industrial & investment transactions.  Specialising in tenanted investments, occupier representation through to vacant land / building sales on the North Shore, Matt was promoted to a North Shore Director in 2015.

In 2011 and 2012 Matt was awarded the "Golden Gavel" for Colliers New Zealand as the most successful auction sales broker across Colliers New Zealand. Matt has been the number one North Shore sales and leasing broker, 2011, 2012 and 2013.  In 2012, was a top 20 performer across Colliers New Zealand and has over $550 million of sales since joining colliers International.

In 2013, Matt was in the top 10 Highest Performing Brokers Nationwide and in 2014, he had a record year completing more than 50 transactions, and  finished in the top 10% of brokers in New Zealand.

In 2015, Matt completed over 60 transactions, more than any broker North of the Bridge, again finishing in the Top 20 brokers in New Zealand.

In 2016, Matt had a record year finishing top 10 in the country and was the top broker on the North Shore. 

View expert