Eight the lucky number for investors

The commercial office building is close to the Waitakere District Court and Westfield Shopping Centre. Photo / Supplied

Known as "The Octagon" because of its eight-sided floor plan, a prominent three-level commercial office building in the heart of the Henderson CBD is for sale by private treaty.

The sale closes at 4pm on March 5, through John Stringer and Bill Carlson of Barfoot and Thompson.

The property, at 6 Alderman Drive, generates a net income of $441,742 and was originally the home of NZI Group and more recently Westpac Banking Corporation. It is now occupied by a number of government, professional and multi-national tenants.

"It was originally constructed in 1986 and has in more recent times undergone a major refurbishment including, new foyer, lift, air conditioning, repainting, resealing of external windows and extensive landscaping," Stringer says. "The building presents well to the market with its 100 per cent occupancy serving as a testament to its quality, location and the vision of the vendors who had the confidence to spend money on the refurbishment in a tight market."

The Octagon is close to the Waitakere District Court, Westfield Shopping Centre and the Henderson railway station.

It sits on a 4058sq m site immediately adjacent to a Pak'n Save supermarket with road frontage and high profile to Alderman Drive.

"The property comprises 3042sq m of net lettable area, with a generous supply of 86 car parks," Stringer says.

Public Trust, a Crown-owned entity providing wills and estate administration services, occupies a majority of the ground floor on a six-year lease that began last year.

SCA Hygiene, a large international paper and hygiene company, occupies the second floor and has been in the building for more than 10 years.

"The company operates in over 60 countries with a global turnover in excess of €11.4 billion and has recently extended its lease," Stringer says.

"The remainder of the building is occupied largely by another Crown entity, the Legal Services Agency, which provides legal aid to people unable to afford it, and several solicitors and barristers chambers, reflecting the building's proximity to the District Court. The average net rental is only $158/sq m, but recent lettings have all been in excess of $200/sq m, so there has been a growth in the rents."

Carlson says the building's construction is of reinforced concrete column and beam structural frame, with the exterior cladding being a mixture of tinted glass curtain wall retained by aluminium window frames.

The floors are essentially the same, with the main structural columns being incorporated within the exterior face of the building.

The building comprises a mixture of commercial accommodation, with the landlord generally providing the carpet, suspended ceilings, lighting and air-conditioning.

"With the building having been recently refurbished and fully leased to strong tenants - along with having an excellent cash flow - this sale represents a great opportunity to private individuals and family trusts alike looking for a solid investment with an attractive yield," Carlson says.

The land on which The Octagon is sited is zoned Community Periphery Environment under the Operative District Plan for Waitakere City (2004).

"This zone is an effects-based plan as opposed to the more activities-based plan," Carlson says.

"As such, issues surrounding design and development, and effects on the local infrastructure, the intensity of proposed use and car parking, determine whether the activity is permitted or not."

Carlson says Henderson is regarded as the sub regional commercial centre of Waitakere City with a wide range of office, retail and professional tenancies. "Waitakere City Council is pro-commercial development within the boundaries of its territory and has set a goal to reduce the percentage of Waitakere's workforce leaving the city each day from 60 per cent to 40 per cent," he says.

"Waitakere has 14 per cent of the population of the Auckland region but produces just 8 per cent of its GDP.

"While this might be a crude comparison, this observation gives some insight into why 58 per cent of Waitakere's workforce leaves the city each day to work - resulting in significant economic, environmental and social impacts."