Complex for sale after makeover - happy Viking included

Interior view of refurbished office space at 80 Alexander Crescent, Otara. Photo / Supplied

A big Manukau industrial complex, which has been signed up for a new 10-year lease by the sitting tenant after refurbishment of the office space, is up for sale as part of Bayleys' latest Total Property portfolio.

Viking Roofspec occupies a building area of 5569sq m at 80 Alexander Crescent, Otara.

This is made up of 4665sq m of warehousing, 557sq m of storage and amenities, and 347sq m of refurbished office space.

The Alexander Cres property is the company's head office where administration, technical laboratories, training facilities and marketing divisions are located.

The building and its 1.497 hectare freehold site in two titles, is being marketed by Rob Farmer of Bayleys Manukau and is for sale by deadline private treaty closing on March 29.

Viking Roofspec is part of Viking Group which is a subsidiary of the Tiri Group, a group of 10 significant New Zealand owned and operated companies, which includes Masport and Pacific Wallcoverings. The Tiri Group acquired the roofing interests of Skellerup Industries which has a long association with the Alexander Cres site. Collectively the group employs 600 staff and has an annual turnover of more than $160 million.

Farmer said the refurbishment of the office space followed an agreement with Viking to enter into a new 10-year lease with the vendors from October 2010. The hard fit out of the refurbished office belongs to the vendor. The building has been repainted, with the corporate colours of Viking added to the office frontage, and is also equipped with fire sprinklers.

Viking Group Limited's lease runs until 2020 and with the right to renew it for a further six years, taking the final expiry date to 2026.

The property is currently producing net annual income of $350,000 which, as the result of an agreed fixed increase, will rise to $397,000 at the next rent review in October 2013. Farmer said this meant the new owner would benefit from a 13 per cent increase in rental about 18 months after settlement. Rent reviews from 2016 on will be to market.

Farmer said the site was a good size for a company like Viking, sitting on a substantial land area with dual street access from Lovegrove Cres and Alexander Cres.

The property, with a fully fenced and sealed yard, includes 2000sq m of surplus land used by the company for yard space which could be developed.

"Not only that, the multiple warehouses on site could be subdivided and sub-let to others in the future if necessary," said Farmer.

He said the property was well located next to the suburban town centre of Otara making it easily accessible to the southern State Highway 1 motorway via the East Tamaki and Highbrook Drive on and off ramps.