Neighbouring investment properties on East Tāmaki Road – the Whakaata Māori TV studios, an industrial lot used as a car park and a large industrial warehouse leased to a logistics occupier – are on the market via CBRE Capital Markets.
The properties; at 421 East Tāmaki Road (car park); 433 and 441 East Tāmaki Road, all occupied by Whakaata Māori; and 439 East Tāmaki Road, occupied by Auslink Logistics are being marketed by CBRE’s Warren Hutt, Brad Ross, Brent McGregor and Bruce Catley.
They are for sale as two offerings or together as a portfolio by way of expressions of interest closing on Wednesday 6 September 2023.
Collectively the assets present an attractive investment opportunity, providing exposure to a government tenant covenant and also to the Auckland industrial property sector, says Warren Hutt, Senior Director of Capital Markets at CBRE.
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“The ongoing high demand among investors for quality tenanted investment property in Auckland means these assets are expected to meet with significant interest from individual investors, family trusts and syndicates.
"With the Whakaata Māori studios and car park providing long-term, passive holdings; and the Auslink industrial facility a high-quality industrial investment with the potential to add value, these assets will suit a range of buyer types.”
While each property offers differing investment attributes, they share a key commonality in their prime East Tāmaki location, says Brad Ross, CBRE Senior Negotiator.
“East Tāmaki is a well-located, central precinct that is home to many high-profile businesses, such as Fisher & Paykel, DHL, Farmers, Lion, and Goodman’s award-winning Highbrook Business Park.”
On two separate titles totalling 4,537sqm of land area, the Whakaata Māori (formerly Māori Television) offices and studios offer a unique opportunity to acquire the headquarters of a state-owned national broadcaster, with a long lease term in place.
Currently returning $1,060,808 net a year plus GST, the buildings house Whakaata M?ori’s main studios and offices as well as a separate production studio.
The Whakaata Māori business is supported by New Zealand legislation in perpetuity, says Brent McGregor, CBRE Executive Chairman.
“For investors looking for passive income, the tenant covenant of Whakaata Māori is first class. The organisation is funded by the government, with the provision of a Māori television service in New Zealand a legal requirement stipulated by Parliament.”
Inflation-linked rental growth, a hard ratchet and rights of renewal on the current lease term provide a growing income stream potentially extending to 2043, should rights of renewal be exercised.
The organisation relocated to the premises in 2016 and has invested significant capital expenditure into a stunning, highly specialised fit-out of 433 East Tāmaki Road, along with a further multi-million dollar fit-out and conversion of 441 East Tāmaki Road which is currently underway.
The main building at 433 East Tāmaki Road is a contemporary, award winning facility with over 3,000sqm of newsroom, office, studio and production space over three levels.
The facility, which won the commercial fitout award at the 2018 New Zealand Commercial Project Awards, incorporates Māori cultural concepts throughout the attractively-designed spaces.
At 421 East Tāmaki Road, a 5,774sqm car park lot is leased to Whakaata M?ori and a local car sales business, providing a potential development opportunity with holding income.
Located behind the Whakaata Māori complex, the warehouse and office facility at 439 East Tāmaki Road comprises a substantial, 10,400sqm high stud warehouse leased to Auslink Logistics; along with 2,300sq m of offices.
The property offers tidy and highly functional industrial space on a large two-hectare site. A large sealed yard, with parking and container storage space, surrounds the warehouse.
The office space, which is currently vacant, offers a strong opportunity to undertake a refurbishment and re-leasing project to add value to the property, says Bruce Catley, CBRE Managing Director of Capital Markets Industrial & Logistics.
“The office space is large enough to be divided up and leased to multiple occupiers, which could meaningfully enhance the asset’s rental profile within the short term.”
Currently returning $1,518,211 in net annual rental income plus gst, the lease to Auslink has nine years remaining on the initial term, with the right to renew for a further six years. Fixed rental growth of 3% a year and additional market rent reviews are built into the lease.
The tenant, Auslink Logistics, is a New Zealand-owned distribution and logistics company founded in 2013 which provides customers with global supply chain solutions including freight forwarding, warehousing, distribution, and third-party logistics. The company has experienced rapid growth and now has three warehouses in New Zealand.
- Article supplied by CBRE
