K' Rd building a real education

By Colin Taylor

Seven-level city property has strong established tenancy.

The upper floors of the building lend themselves to development into apartments.
The upper floors of the building lend themselves to development into apartments.

A seven-level commercial building on a prominent corner of Karangahape Rd is being offered for sale fully leased to three education providers and a Gloria Jean's Coffees outlet.

The 5684sq m building at 75 Karangahape Rd on a 1540sq m site at the corner with Liverpool St is being offered for sale by Andre Siegert and Robert Platt of Bayleys Auckland as part of Bayleys' latest Total Property portfolio of commercial and industrial properties.

The building is producing net annual rental income of $1,098,230 and is up for sale by international tender closing April 10.

The anchor tenant, which has naming rights, is Taylors College, a provider of university preparation programmes particularly targeted at offshore students coming into Australia and New Zealand to study.

Established in Melbourne in 1920, it provides secondary school education (Year 10 - Year 12) and specialised university foundation preparation programmes at campuses in Melbourne, Sydney, Perth and Auckland.

The Foundation Year programme at Taylors College in Auckland is run in partnership with AUT University, Massey University and the University of Auckland but it is also recognised as a university entrance qualification by other universities.

Taylors College is part of the Study Group, one of the world's largest education organisations, teaching over 40,000 international students through an international network of campuses.

There are about 550 to 600 students currently studying at Taylors College's Auckland campus and it occupies just over 100sq m on the ground floor of the building plus levels one, two, four and six. These floors are internally subdivided providing classrooms and study areas.

Taylors College has recently renewed a lease over the bulk of its space for five years.

The other two education tenants are on six-year leases.

New Zealand Career College occupies level three of the building. It is an NZQA accredited provider of courses in early childhood education, healthcare, business, trades and English and has two other campuses in Auckland as well as in Wellington and Christchurch.

Level 5 is occupied by Auckland Goldstar Institute, another NZQA accredited provider offering diplomas in healthcare studies and management, the Institute of Management's diploma in management plus language courses.

At the rear of the building is a car parking area accessed from Liverpool St that provides 59 secure car parks - a favourable car parking ratio for a building of this size, says Siegert.

Gloria Jean's Coffees has considerable frontage on to Karangahape Rd and occupies 250sq m of the ground floor space on a six-year lease.

Australian owned and locally operated, the company now has over 1000 coffee houses in 39 countries, having opened its first store in New Zealand in 2003. It now has 23 locations throughout the country.

Platt says the upper floors, which range from 828sq m to 921sq m, could provide flexibility for conversion to student accommodation or apartments in the longer term, given the elevated views they have of the city and the harbour, and plenty of natural light.

Siegert says the property also has excellent access to the motorway system, being close to on and off ramps located at Union St, Wellesley St and about 100m from the Symonds St southern motorway junction.

What's on offer?

The property: Seven-level commercial building
Where: 75 Karangahape Rd
Method of sale: International tender
Deadline: Thursday, April 10
Agency: Bayleys Auckland
Features:
*Fully leased
*Solid college education tenants
*In CBD education zone
*Close to good transport links

- NZ Herald

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