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NZ Office warehouse and dance studio

Property Here - Saturday, September 14, 2013

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A distinctive glazed front investment property in East Tamaki serving as the headquarters of Uniden New Zealand is being marketed by brokers handling its sale as an ideal holding for family trusts or other passive investors.

"The property at 150A Harris Rd also has a secondary tenant, Just Dance Studios," says Jolyon Thomson from Colliers International's South Auckland office who is marketing the property with colleague Paul Higgins. Featured within Colliers International's latest New Zealand Portfolio magazine, the property is for sale by auction at 11am on October 10 at the agency's offices at 151 Queen St, Auckland.

Thomson says the office and warehouse property offers investors a strong tenant covenant with a multinational company, an additional tenancy and a quality building in a busy and high-profile industrial area..

"At a time when investors are looking for well-tenanted commercial properties in good locations - given the low borrowing rates available - this property has several characteristics," Thomson says. "It has two separate tenants on good lease terms to split the risk and there is good demand among occupiers for property in this area with vacancy always very low," says Thomson.

Uniden has occupied the 1224sq m property since it was purpose-built for the company in 1995 and has just signed a new five year lease which generates $102,000 in net annual rental income. "Uniden is a longstanding tenant and the property has worked well as its New Zealand headquarters over the past 18 years," Higgins says.

"Uniden has also indicated its commitment to the property for at least the next five years, through taking on a new lease term commencing in November this year."

The telecommunications company occupies a ground floor office space of 306sq m, along with a showroom, service area and a 473sq m high stud, clear-span warehouse which is used for storage and distribution.

Higgins says the building has been maintained to a high standard over its life and has well presented interior areas following the recent installation of new carpet and an internal repaint.

The standalone property also contains a 306sq m first floor space occupied by Just Dance Studios with 24 car parks also provided on a new three year lease earning $48,000 net a year.

"With a solid income stream and new leases, this is a serious investment opportunity and we expect strong interest in the auction room," Thomson says. "High profile buildings like this are very popular among occupiers and investors and as such rarely come to the market."

Higgins says the property is in a fully occupied industrial complex with huge visual profile from busy Harris Rd, which carries over 24,000 vehicles daily. It is also just 150m from the junction of Harris Rd and Ti Rakau Drive, one of the main arterial routes through East Tamaki.

Thomson says the Harris Rd area is growing in popularity.