Strategically located commercial property for sale in the affluent Auckland suburb of Remuera
A high-profile commercial property in one of Auckland’s most affluent suburbs is for sale with long leases to a global insurance giant, a leading food distribution company and a well-known gym.
Colliers International has been exclusively appointed to market 57 Market Road, Remuera, for sale by deadline private treaty closing at 4pm on Wednesday 12 June, unless it is sold earlier.
The 1,942sq m commercial building is strategically located on a 2,147sq m freehold site with exceptional transport links.
It sits at the nexus of the upmarket suburbs of Remuera and Epsom, right next to the Remuera Train Station and two motorway off-ramps.
The property is also within metres of the Southern Corridor’s main arterial route, Great South Road, which connects the thriving commercial hubs of Newmarket and Greenlane.
Three commercial leases, together with income from the property’s 59 car parks, return $673,942.84 in net annual rent. The weighted average lease term is 5.7 years as of April 2019.
Gareth Fraser, Auckland Director of Investment Sales, says this is a chance to secure a split-risk investment with outstanding tenant covenant.
“The property is anchored by AIA International – part of insurance giant AIA, which is the largest listed company on the Hong Kong stock exchange and the second largest life insurer in the world.
“AIA focuses solely on the Asia Pacific market, with a total sum insured of approximately US$1 trillion.
“The remaining two commercial leases are to multinational wholesale food distributor Bidfood and international gym operator Jetts Fitness.
“Bidfood provides a total food supply service, distributing more than 20,000 products to over 15,000 commercial customers across New Zealand.
“Jetts Fitness is a leading provider of 24-hour health and fitness clubs, with more than 270 locations across Australia and New Zealand, as well as in Asia and Europe.
“The strength of these tenants, combined with the property’s superb location and fundamentals, make 57 Market Road an outstanding investment.”
Constructed in 1997, the property has an A-plus grade seismic rating of 115 per cent of new building standards.
Investment Sales Broker Simon Child says its two office levels have been extensively refurbished to provide quality modern office accommodation.
“Both levels benefit from lift and stairwell access from the basement, while the main lobby is accessed directly from Market Road.
“The offices are accompanied by a lower level of basement car parking and storage.”
AIA occupies 820.8sq m on a six-year lease that includes 12 car parks and signage rights. An additional 12 car parks are on a revolving annual lease.
The company currently pays $328,504.80 in net annual rent. Annual rent reviews on the base rent only are fixed at 2.5 per cent.
The main lease expires in January 2024, after which there is a two-year right of renewal to January 2026.
Bidfood occupies 519.07sq m plus 15 car parks on a six-year lease, returning $187,761.60 in net annual rent. Annual rent reviews are fixed at 2 per cent.
The lease expires in June 2024, after which there are two rights of renewal of three years each.
Long-term tenant Jetts Fitness occupies 306.59sq m plus eight car parks on a seven-year lease, returning $113,676.44 in net annual rent. Annual rent reviews are indexed to inflation plus 2 per cent.
The lease expires in September 2026, with no further rights of renewal.
Two companies lease six car parks each on six-year terms. The leases return $22,000 each in net annual rent, with annual rent reviews fixed at 2.5 per cent.
There are no rights of renewal upon lease expiry at the end of January 2025.
Richard Kirke, International Sales Director at Colliers, says the property’s strategic location on Market Road makes it an excellent long-term investment and future redevelopment option.
“Located between the Southern Motorway and Great South Road, the property benefits from excellent exposure to a high volume of passing traffic,” he says.
“Market Road is the main through-road between the affluent suburbs of Remuera and Epsom, linking Remuera Road to the north with Manukau Road to the south.
“Great South Road is one of Auckland's main arterials, offering multiple connections to the Southern Motorway, and extensive bus lanes servicing numerous routes.”
Remuera is considered one of New Zealand’s most prestigious areas with a median house price in 2018 of $1.7 million.
Newmarket, a short distance to the northwest, is Auckland’s retail hotspot.
The area is experiencing significant growth, with Westfield Newmarket undergoing a $790m redevelopment that will make it the largest Westfield shopping centre in the Southern Hemisphere.
Auckland’s CBD is located only 5km to the northwest of the property, with a motorway on-ramp located nearby on Gillies Ave.
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