Corner building attracts plenty of attention

Existing tenants are keen to stay on in this handy location. Photo / Supplied

Situated on a high-profile corner, a 1731sq m office building at 621 Great South Rd, Manukau, is being offered for sale with lengthy leases in place to a mix of long-established tenants.

The building is listed in Bayleys' latest Total Property portfolio and is being sold through Michael Loughlin, Bayleys Auckland, and Richard Laery, Bayleys Manukau.

Laery says the building sits on one of Manukau City's most visible corners with dual frontage onto Great South Rd and Cavendish Drive.

"It simply can't be missed by motorists and pedestrians because it is very close to Manukau City Centre and only a few metres away from the Southern Motorway interchange and new Countdown supermarket," he says.

The property, constructed in the 1980s, sits on a 2574sq m freehold site, has two office levels with basement and on-site parking for 67 cars.

It is producing net annual rental income of $397,543 from its four tenants. Health care co-operative Serious About Maternity Care (SAMCL) occupies most of the ground floor and is taking a new six-year lease on its 528sq m from next month. The other ground-floor tenant is Video Ezy, which is renewing its lease for three years from May. Final expiry date is 2019 if all rights of renewal are taken.

Upstairs, legal firm Inder Lynch is also signing a new six-year lease for its 423sq m of office space when its lease expires in July, along with a right to renew for a further three years. In addition, the professional practice has retained first option to lease the balance of the first-floor space now occupied by Child, Youth and Family Services, should CYFS decide to move when its term ends in 2012. CYFS, however, has two rights of renewal over the 511sq m it occupies.

Loughlin says the property would be one of the best investment office blocks on the market at present given its high profile and the fact that most of its tenants want to stay on.

"The tenants like being in the heart of Manukau City and the building has a good parking ratio for staff and clients. It is a multi-tenanted diversified-risk property with quality medical, legal, retail and government tenants."

Inder Lynch is a long-established South Auckland business having started up in 1946 in Papakura. It provides full legal services from litigation to family trusts. "They have a large number of very loyal clients with many families having been with them for three or four generations," says Loughlin.

While not quite as old, having been established in 1996 when it was first formed as South Auckland Maternity Care Ltd with three midwife members, SAMCL has grown from that first contract for maternity service with the then Northern Regional Health Authority to become a national organisation with more than 300 members.

Now SAMCL is structured as a company with a board of directors who determine strategic direction.