An office building housing New Zealand’s largest full-service real estate company and the country’s leading insurance broker has been placed on the market for sale.
The two-storey freehold property on a prominent corner site at 2 Harris Road, East Tamaki, is fully leased to Bayleys Real Estate and Aon New Zealand which have both occupied the site for 15 years. The dual tenancies return total net income of $539,516.40 per annum plus GST and outgoings.
Bayleys South Auckland occupies some 879 square metres with offices and an auction room serving the industrial, commercial and retail property sales and leasing markets. The team operates throughout South Auckland, from Greenlane in the North to the Bombay Hills in the South. It is part of a wider Bayleys network of over 90 offices across New Zealand and three in Fiji, with more than 2,000 staff.
Bayleys is responsible for two leases which also incorporate signage rights and 39 car parks at $431,368 per annum plus GST and outgoings. The leases run through to 2028 with two, and four, further three-year rights of renewal respectively.
Approximately 478 square metres and 16 car parks are leased to the New Zealand arm of global professional services giant Aon. The company is a leading provider of insurance-broking, risk-management and human-resources consulting services with branches throughout New Zealand. Aon New Zealand pays $108,148 plus GST and outgoings for its office space, signage rights and car parks on a lease extending to 2025, with three further three-year rights of renewal.
All leases at the Harris Road property incorporate annual CPI rent increases with market review on renewal.
The freehold land and buildings at 2 Harris Road are now being marketed for sale by Deadline Private Treaty (unless sold prior) closing on 3 December, through Bayleys South Auckland.
Salespeople Tony Chaudhary, Scott Campbell and Janak Darji said the property consisted of a fully-refurbished building of approximately 1,522 square metres on 2,819 square metres of land at the corner of Harris and Allens roads.
Chaudhary said the property offered modern offices on two floors, plus Bayleys’ auction room and more than 50 car parks. The building was extensively refurbished in 2016 with a high-quality fitout and has an A-grade seismic rating of 100 percent of new building standard, he said.
“Anchor tenant Bayleys Real Estate occupies the first floor and have their auction room at ground level. Access to the Bayleys tenancy is through atrium auction room, which has been designed to represent the industrial and commercial side of the business. This includes polished concrete floors, a high-stud ceiling, dropped-down LED lights and exposed steel beams which exemplify elements of an industrial warehouse,” said Chaudhary.
“Aon Insurance is positioned on the ground floor, and currently occupies two office tenancies. The main access to the building is through the lobby located at the midpoint of the structure facing Harris Road, providing access to Aon Insurance and the first floor of the Bayleys tenancy.
“Located to the rear of the property is an internal, covered parking area. Access to this area is through a roller door and common areas through the property,” Chaudhary said.
Campbell said the property was located in an area zoned Business – Heavy Industry, which supported surrounding uses such as manufacturing and distribution and accommodated a number of sites big enough for large-scale industrial activities.
“In recent years, the East Tamaki industrial area has been effectively enlarged and enhanced with the Highbrook development. The area remains the largest and most sought-after industrial location in South Auckland,” Campbell said.
Darji said the Harris Road property was well insulated from residential areas but still close enough to benefit from a large labour pool in East Auckland.
“The location offers convenient proximity to amenities in nearby suburbs including Botany, East Tamaki, Pakuranga and Highbrook. It has good access to Auckland’s motorway network via Ti Rakau Drive and the Highbrook Drive extension,” Darji said.