Scholastic NZ Ltd has been the sole tenant at 21 Lady Ruby Dr since 1994. Photo / Supplied
With a solid lease in place to educational publisher Scholastic, a warehouse and office property is now for sale in East Tamaki.
Scholastic NZ Ltd has been the sole tenant at 21 Lady Ruby Drive since 1994, with a lease — backed by a guarantee from New York-based parent company Scholastic Inc — earning $630,000 net per annum.
Colliers International investment directors Andrew Hooper and Jolyon Thomson are marketing the property with offers closing at 4pm on October 16, unless it sells earlier.
The substantial property, on a 7211sq m freehold site, has a net lettable area of 4465sq m encompassing a large warehouse and a north-facing office fronting the street.
"This is a top-quality industrial property with a strong tenant covenant in an outstanding location," Hooper says. "There's 85 metres of road frontage exposure to Lady Ruby Drive — arguably one of the most sought-after streets in East Tamaki.
"Tenant Scholastic has been a household name among Kiwi parents and teachers since the 1960s. The company has occupied the premises for more than 23 years and has just over three years remaining on its lease, plus a four-year right of renewal. With record low industrial vacancy rates and strong demand for quality warehousing, 21 Lady Ruby Drive ticks all the boxes for investors."
Hooper says the property has numerous beneficial attributes that make it "a true headquarters facility".
"There's a sizable yard as well as 63 car parks for both customers and staff – along with three entry points off Lady Ruby Drive, allowing excellent access for customers and staff and for truck movements."
He says the buildings meet 100 per cent of seismic standards and are fully equipped with fire sprinklers throughout.
The building's 3448sq m of high stud warehousing comprises an original 1842sq m warehouse; a new 815sq m warehouse; and a 791sq m extension built for the tenant just over two years ago.
Access to the warehouse is via four roller doors. The office and amenity block is split across two levels at the front of the site and has both open plan and partitioned office space. The north-facing offices benefit from excellent natural light. The property also includes a small retail outlet store where books are sold.
Thomson says many successful businesses have made Lady Ruby Drive their home including Subaru, Movenpick, Buteline, NZ Window Shades and Yamaha.
"The street has always been a popular location with attractive buildings, many of recent construction. The location offers excellent proximity to the Southern Motorway via both the East Tamaki and Manukau interchanges. Easy access to the nearby industrial areas of Wiri, Auckland Airport and Mount Wellington make this location extremely desirable.
"The wider East Tamaki area is considered to be one of the best industrial locations in New Zealand. Numerous national and global companies call East Tamaki home. Properties are highly sought after but vacancy is scarce, with Goodman's development of the Highbrook Business Park likely to be the last major greenfield development in the area.
"Amenity in the local area is excellent with the likes of Botany Downs town centre and Botany Junction and this is expected improve with the development of the Flat Bush Town centre.
"The East Tamaki area also benefits from excellent access to local residential catchments that provide an abundant labour force," Thomson says.
The site is zoned Light Industry which allows for uses including manufacturing, production, logistics, storage, transport and distribution activities.
US-based Scholastic Corporation is a global educational publishing company founded in 1920.
It has operations in 13 countries and exports books and education materials to 150 countries around the world.
The New Zealand subsidiary was registered in March 1962 and has since become a well-known brand.
The Scholastic Book Club and its familiar cartoon mascot, Lucky the cat, have been synonymous with Kiwi learning for decades.
Scholastic's local publications include picture books, board books, children's fiction, non-fiction, activity books and Maori language titles.
One notable recent success is the Number 1 bestselling children's book The Wonky Donkey, which features words and a song by Craig Smith and illustrations by Katz Cowley.
Scholastic sponsors the Duffy Books in Homes programme — a literacy initiative established by the Alan Duff Charitable Foundation, which has donated more than 12 million children's books since 1994.