A fully leased office building anchored by a long-term government tenant is for sale in the Auckland growth hub of Manukau.
Situated in the heart of Manukau’s office precinct, 22 Amersham Way is a four-level commercial building that is prominently positioned on a freehold corner site.
The building is occupied by five tenants with an average weighted lease term of 4.3 years, returning a net passing income of $708,636 plus GST per annum.
Colliers International’s Capital Markets and Investment Sales teams have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 15 July, unless sold prior.
Jason Seymour, Capital Markets Director at Colliers, says it is a chance to invest in an outstanding location.
“Manukau is one of the fastest-growing areas of Auckland with significant residential, commercial and infrastructure development in the pipeline.
“The property for sale is superbly located at the centre of Manukau’s commercial precinct, a short 250m walk from the Manukau Train Station.
“This is a major advantage to the property, with regular train services operating between Manukau and Auckland’s CBD via many popular eastern and central suburbs.
“The property is also a short walk from the recently upgraded Manukau Bus Station, which is the heart of South Auckland’s transport network, hosting most of the buses connecting surrounding suburbs.
“This proximity to the bus and train stations – as well as to the nearby State Highway 1 and 20 motorway interchanges – makes the property highly accessible and convenient for tenants.”
Matthew Barnes, Director of Colliers’ South Auckland Investment Sales team, says the property comprises a multi-level commercial building with a net lettable area of 2,874sq m.
It is situated on an 854sq m freehold site with Business - Metropolitan Centre zoning, allowing for mixed-use development of up to 72.5m in height.
There are seven covered on-site car parks, as well as 24 car parks leased from Auckland Council.
Barnes says the property returns a solid split-risk income stream from a diverse tenant mix.
“The property is anchored by the Ministry of Justice, providing the security of a long lease to a government tenant.
“The remaining tenants include two tertiary education providers, NZSAF and Workforce Development, as well as market expansion services provider DKSH, and business consultancy company Duco.”
The Ministry of Justice occupies 949sq m on the ground floor and part of the first floor; Duco occupies 393sq m on the first floor; Workforce Development and DKSH occupy 430sq m and 332sq m respectively on the second floor; and the New Zealand School of Art and Fashion (NZSAF) occupies 770sq m on the third floor, as well as holding signage rights.
The leases have a mix of fixed, CPI and market rental reviews, with final expiry dates between December 2022 and December 2037.
Blair Peterken, Director of Colliers’ Capital Markets team, says the property has an attractive street frontage with a bold corner profile.
“Built in 1986, it is constructed of concrete with aluminium joinery and is serviced by a single 13-person Kone passenger lift.
“The property is accessed via a raised pedestrian entry on the corner of Amersham Way and Davies Avenue, with vehicular entry via a laneway.
“All four levels are air conditioned and have similar fit outs with carpeted floors, glass partitioned offices and meeting rooms, and kitchenettes.
“Each tenancy is swipe card access controlled and has shared use of common area facilities, including recently upgraded bathrooms on each level.”
Ronal Prasad, of Colliers’ South Auckland Investment Sales team, says the property stands to benefit greatly from Manukau’s increased accessibility and exposure.
“Manukau’s growth is evident from the substantial amount of residential development underway in the area.
“New developments in the area include the 17-level Lakewood Plaza apartment building and a new neighbourhood of up to 400 homes on Barrowcliffe Place.”
Prasad says Manukau is Auckland’s second largest metropolitan centre, outside of the CBD, with a strong civic, administrative, educational and retail focus.
“The Transform Manukau programme, led by Auckland Council development agency Panuku, aims to build a strong, permanent residential population of 10,000 people in central Manukau.“Panuku is also working closely with central government to achieve coordinated investment in housing, education, health, transport, and public and community facilities in Manukau.”