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High-profile office asset on offer in Grafton

NZ_AucklandCBD_Communications_Highprofile office asset on offer in Grafton

A prominent office building on a large landholding in Auckland’s city fringe suburb of Grafton will appeal to a wide range of purchasers looking to secure a premium asset with significant upside potential.

60 Khyber Pass Road comprises a six-level office building with 5,117sq m of net lettable area and 93 secure car parks all situated on a 2,293sq m site that is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.

Cin7 is the sole tenant occupying levels four and five leaving flexibility for the new owner to occupy or lease the remainder of the recently refurbished building to new tenants.

Cin7 began a nine-year lease from 1 April 2021, which includes 32 car parks and provides $775,690 of net annual rental income. The lease includes two further rights of renewal of three years each and has fixed annual rent increases of 3 per cent with a market review on the third anniversary of the lease.

60 Khyber Pass Road is conveniently located a short walk from the new Mount Eden railway station that is under construction and will provide easy access to the future City Rail Link. Khyber Pass Road is also a major bus route and has direct access to and from the Southern Motorway.

Colliers Directors Jason Seymour and Blair Peterken have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Tuesday 14 December, unless sold prior.

The four vacant floors range in size from 684sq m to 909sq m and include one car park per 56sq m of net lettable area for each future lease agreement.

Seymour, Director of Capital Markets at Colliers, says the property has immediate scope for significant rental growth through the leasing of vacant floors.

“Varying sized floorplates and a central core layout means that the building offers a number of flexible solutions to accommodate tenants from as small as 150-200sq m, all the way up to corporations of 3,000sq m over multiple floors,” Seymour says.

“Businesses are continually assessing their options as they look to create desirable and modern work environments for their staff. Despite the headwinds posed by Covid-19, high-quality office space is still in demand throughout Auckland.

“The building provides significant holding income through the anchor tenant and when fully leased has the potential to return nearly $1,900,000 plus GST in total net annual rental income.”

The property is strategically located near popular suburbs Newmarket, Mount Eden, and Ponsonby, while there’s a range of amenities within walking distance, including bars, restaurants, gyms, and Westfield Newmarket, which is one of Auckland’s premier shopping destinations.

Peterken, Director of Capital Markets at Colliers, says the recent refurbishment of the building means it presents in magnificent order.

“The refurbishments on levels four and five include new carpet tiles, LED lighting, upgraded balconies and the installation of sprinklers and an upgraded HVAC system,” Peterken says.

“A passenger lift upgrade and lobby refurbishment have been completed, including new furniture, lighting, accessibility ramp, and a revolving door that is in the process of being installed. Brand new end-of-trip facilities have also been installed in the basement.

“The exterior upgrade included repainting and landscaping rejuvenation, while a new exterior security roller gate with intercom and pedestrian gate has been installed to provide improved security to the exterior car park.

“Longer term, the site also has further development or alternative use potential due to the flexible Business – Mixed Use zoning and favourable site coverage. The existing building could be expanded or there may be repositioning opportunities.

“In the shorter term, 60 Khyber Pass Road looks set to continue its history as a successful location for some of New Zealand’s largest corporations. This is evidenced by the recent lease to Cin7 and the continuing demand from prospective occupiers drawn to the building’s prominent location and recent refurbishment.”

The property is managed by Oyster Property Group, a leading New Zealand commercial property fund manager. Oyster manages a range of retail, office, and industrial assets with a combined value in excess of $2.1 billion that provides accommodation to more than 500 international and local tenants.


Related Experts

Jason Seymour

Director | Capital Markets

Auckland

Jason has 29 years international experience in commercial sales, tenant representation, lease negotiation, corporate real estate strategy development, property management and building services design.

Jason joined Colliers International in 1991 to establish the engineering division in the Wellington office, and took on a national engineering role in 1993, incorporating the Wellington Property Management division in 1994. Jason transferred as a Director to the Colliers International Bangkok office in 1996, and in 1998 returned to Auckland to take up a role in commercial leasing brokerage, where he was consistently one of the top four leasing brokers in the market. In late 2005, Jason transferred to the Corporate and Institutional Sales team, specialising in sale and leaseback strategies, land development and large corporate sales.

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Blair Peterken

Director | Capital Markets

Auckland

After more than a decade in Australia’s highly competitive commercial property sector, Blair joined Colliers International NZ as Director in the Capital Markets team in April 2017.

Specialising in the sale of larger commercial assets and mixed-use sites around New Zealand, Blair brings a high level of energy and diligence to the industry. His extensive knowledge and educational background ensures he is well-equipped in progressing and developing the Capital Markets team.

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Previous Experience

From 2014 – 2017, Blair was Director and Head of JLL’s South Sydney office where under his leadership, the company  grew from third to first in the South Sydney market in both leasing and sales. In 2015 he was the company’s highest fee earner across the Australian industrial business. Blair specialised in the sale and leasing of larger industrial and commercial assets including mixed-use development sites within the South Sydney market.

Prior to this he was Head of Industrial, South Sydney at CBRE. While at CBRE, Blair won the prestigious Circle of Excellence Award twice for his performances and was highest fee writer in the South Sydney office in 2012 and 2013.

Peterken’s top transaction while in Sydney  was the 2014 sale of a 4.9ha business park in Rosebery, South Sydney to Meriton Group  for A$190,000,000

His two biggest leases were the single largest leasing transactions in South Sydney in their respective years. In 2011, he leased a Goodman-developed, 12,400sq m warehouse and office in Mascot to logistics company Toll, and last year, he leased a Meriton-owned 22,000sq m site in Pagewood to WSI Logistics.

 

A selection of notable sale transactions:

  • Sale of St Kentigern Girls School, Remuera - $40,000,000 +
  • The General  Buildings, 29-33 Shortland Street, Auckland - $42,000,000
  • 110 Symonds Street, Auckland - $38,500,000
  • 1-55 Rothschild Ave, Rosebery - $190,000,000
  • Central Park Business Park,  Greenlane - $209,000,000
  • Bunnings Hamilton South - $25,100,000
  • The Warehouse, Blenheim - $16,380,000
  • NZI Centre, Auckland - $63,000,000
  • Royal Heights Shopping Centre, Auckland - $17,000,000
  • 75 Karangahape Road, Auckland - $23,300,000
  • 5 Nelson Street, Auckland - $9,000,000
  • 66-80 Broadway, Newmarket - $65,000,000

 

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