"It was purpose built as a modern integrated health care centre and is one of the keystone projects in the multi-stage New Lynn Urban Regeneration Plan which is well under way with large scale improvements to transport infrastructure and public spaces. Residential intensification will further support the investment, with a new 10-level apartment building under construction next door and due for completion mid this year."
Seymour says the property offers an excellent tenant covenant under a single head lease that accounts for more than 70 per cent of the building's net income.
"This is a passive investment opportunity with a 15 year head lease on the two medical centre floors and ground floor chemist. Additionally there are seven other ground floor retail tenancies including a café, convenience store and Yoghurt Story plus four new vacant retail spaces which the vendor is marketing for lease but providing a two year rental underwrite in the meantime.
"This means that the property is offered for sale with full annual market income of over $1.5 million and with guaranteed growth. Over 86 per cent of rental income is subject to either Consumer Price Index plus 1 per cent growth every one or two years or fixed at 3 per cent per annum."
The building resulted from Auckland Council, Auckland Transport and the property's developer and owner, Infratil Infrastructure Property Ltd, partnering to deliver a modern, high quality transport orientated centre, anchored by a medical and retail development to serve the growing community as the first stage in the revitalisation of New Lynn.
The premium grade building has 5092sq m of total net lettable area with the medical centre occupying about 4000sq m on levels one and two.
An associated ambulance bay and pharmacy are located on the ground floor along with the other retail tenancies. The building is directly linked to a neighbouring Auckland Council owned 300-space carpark by an air bridge.
"With floor to ceiling heights of 3m, and several million dollars spent on internal fit out, each floor provides an exceptional level of quality and amenity," Seymour says.
The anchor tenant is New Lynn Health Centre Consortium, which was formed following an amalgamation of three local medical centres and specialist service providers. The consortium subleases quality space to various specialists, including a physiotherapist, dental clinic, radiology clinic, and the Waitemata District Health Board community services.
Reed says the consortium is an ideal anchor tenant. "It is a highly experienced group with an established long term patient base providing the investor with long term income security that will be strongly linked to an essential medical industry within a large residential catchment," he says. "The building owner will purchase a health centre with a diversified occupier base without complicated on-going management."
Reed says the centre has come available at a time when demand for quality commercial property is very strong and it is likely to interest high net worth individuals, family trusts, syndicators, and corporate investors.
Green says the medical centre forms a cornerstone of Phase One in the development of Merchant Quarter, a high profile precinct forming the new heart of New Lynn. Officially opened in March 2013, Merchant Quarter encompasses the new medical building, the new transport interchange, public car park, and an upgraded McCrae Way which is now shared space.
"The building's triangular facade panels provide architectural interest, while subtly referencing the area's ceramic industry heritage," he says. "The edges of the precast panels were colour-matched to vintage Crown Lynn tea saucers and a high gloss sealer coating mimics the company's ceramic glazes. The building's continuous retail frontages at the ground floor enliven the streetscape. The main entrance is accessed from the north side off McCrae Way, adjacent to Memorial Square, connecting the building with the public spaces."
Phase Two of Merchant Quarter, Merchant Square, is expected to be completed by 2015. It will be a new public space complementing the existing Memorial Square and will offer numerous new public dining and entertainment options. A new lane will connect McCrae Way to Totara Ave and the historic building at 22 Totara will be restored and incorporated into a new mixed use development. Phase Three is still in the planning stages.
Reed says anyone visiting New Lynn will be impressed by the changes taking place there. "It is just 20 minutes to Auckland's CBD and has good public transport via the new rail and bus interchange," he says.
"Auckland Council has identified New Lynn as a priority growth area, with its residential catchment expected to grow from 89,000 to 95,000 by 2016. The council has teamed up with developers to transform the suburb into a colourful metropolitan centre with high density housing for people who want to enjoy an urban lifestyle - living in apartments, working close to home and using public transport."
"The urban plan envisages New Lynn developing into a sustainable community attracting a population of 20,000 residents and 14,000 workers by 2030. The completion of New Lynn's world-class transport interchange - one of the country's largest ever public transport infrastructure investments - was the first step in the regeneration project, and there are many more improvements planned."
The $300 million transport project dropped Auckland's western rail line below ground and added an award-winning two-level rail and bus interchange above it.
Further improvements integrated the surrounding road network, creating better pedestrian and traffic flow, and providing more frequent and reliable passenger services.
"Auckland Council has committed funding to a new $5.7 million urban park, and another $16 million is allocated for further road construction and design improvements," Reed says.
