Bayleys news & articles

Auckland CBD car parks provide a strategic hands-off investment

Tags: Commercial

Two investment car park blocks, on long leases in Auckland’s central business district have been placed on the market for sale.

The 43 car parks at 17 – 19 Nelson Street, split into two investment blocks - one containing 25 spaces and the other containing 18 spaces, with each car park on its own individual freehold principal unit title - generate an annual rental of $98,734 plus GST and $86,849 plus GST respectively.

The car parks are fully leased to one of New Zealand’s biggest car park operators, Tournament Group Limited, with spaces sub-leased long-term to staff from shipping container giant Maersk Line and global wine marketing brand Pernod Ricard.

The carpark investment blocks are for sale by deadline private treaty through Bayleys Auckland, with offers being taken until 4pm on October 23. Salespeople Alan Haydock and Damien Bullick said the property has a seismic rating of 99 percent of new build standards, and is zoned business – city centre.

Mr Haydock said revenue from the car parking operations was not only underpinned by the long-term leases of nine and ten years to Tournament Group, but was also ‘future-proofed’ with annual 3.0 and 2.5 percent rental reviews written into the lease terms.

The lease of the 18 car parks which are occupied by Maersk runs through until 2025, while the lease of the 25 car parks which are occupied by Pernod Ricard runs through until 2026. Mr Haydock said that each of the car parks were on individual titles – providing further flexibility in the future. Pedestrian access to the car park spaces is via an external covered stairwell and internal lift.

“While there are other car parks dotted around Auckland’s Central Business District, it is often difficult for corporate entities and property owners to secure a sufficient staff car parking spaces in the same location,” Mr Haydock said.

“Many of the new and refurbished offices in the Auckland’s CBD are designed to maximise the desk-to-floor space ratios – resulting in higher density configurations. Those higher staff volumes can require more vehicle parking spaces – meaning there will always be demand for conveniently located parking premises.”

Mr Bullick said Auckland Council’s business – city centre zoning for the site allowed for a mix of commercial, residential and retail activities, configured to deliver the greatest intensity of development in terms of height and floor area of any zone in the city plan.

The multi-level car parking spaces at 17 – 19 Nelson Street sit above a street-level row of shops and small commercial premises which are not part of the property being marketed for sale.

Related articles