An architecturally designed, three-level building with a recently renewed lease to long-term occupant ASB Bank is up for sale in Manukau’s commercial centre.
Located on a 4070 sq m site at 17 Ronwood Ave, the 3438 sq m office building is currently generating net annual rental income of $1,186,887 plus GST. ASB has been in occupation since the building’s completion in 2008.
The bank took an initial 12-year lease and in a deed of variation and extension executed late last year, the term was extended for a further five years to November 2025. ASB has one further five-year right of renewal which if exercised would take its occupation through until November 2030. The lease has a mix of fixed rental growth and market rent reviews.
Featured in Bayleys’ latest Total Property portfolio, the property is for sale by tender, closing 4pm March 12, unless sold prior. It is being marketed by Sunil Bhana and Mike Houlker of Bayleys’ Auckland Central office and Tony Chaudhary, Bayleys South Auckland.
“This striking, modern building represents fundamentally good real estate,” says Bhana. “It is well located in a high profile road front position within the largest commercial centre outside Auckland’s CBD an is fully leased to one of the country’s largest banks.”
The building, which has a Grade A seismic assessment of 100 percent of New Building Standard, has 304 sq m of retail space on the ground floor housing an ASB branch together with an adjoining 232 sq m canopy providing drive-through banking capability.
The first and second floors, of 1,422 sq m and 1,321 sq m respectively, provide largely open plan office space, interlinked by a central atrium and internal stairway. This allows excellent natural light into the floors as well as providing an attractive working environment, says Bhana. A ground floor lobby has two lifts that access the upper levels.
There are lunchroom facilities and other amenities on both office levels which are largely open plan but also provide some partitioned offices and meeting rooms. Level two also has two balconies totalling close to 60 sq m.
“It’s a very well presented building which clearly suits the tenant’s needs as evidenced by their early lease renewal,” says Bhana.
The property comes with a total of 87 car parks positioned along the eastern driveway together with secure covered and uncovered car parking at the rear of the building accessed via both Ronwood Ave and a service lane from Sharkey St.
Mike Houlker says a substantial area of under-utilised land at the rear of the site, currently used for uncovered parking, has potential for future development. The property has a Metropolitan Centre zoning which permits a wide range of activities including commercial, leisure, high density residential, tourism, cultural, community and civic services. There is a height limit of 72.5m for the site.
Manukau’s metropolitan centre is the main service hub for the wider South Auckland area. It features the Westfield Shopping Centre, large and small format retail, office, residential dwellings and apartment buildings.
Tony Chaudhary says the area is well serviced by motorway links, main arterial routes and rail infrastructure. It is home to substantial council and crown entities, education providers including the Auckland University of Technology and the Manukau Institute of Technology, the Counties Manukau District Health Board as well as large companies such as the ASB.
A Transform Manukau programme, led by Auckland Council development agency Panuku, aims to build a strong, permanent residential population of 10,000 people in central Manukau.
“With substantial public and private investment recently undertaken and continuing, including retail, commercial and residential development, the area is well placed for significant further growth,” says Chaudhary.