An investment property in South Auckland leased to a government-backed tertiary education provider is for sale through CBRE, offering a long term passive holding with plenty of future upside.
15 Earl Richardson Ave, Wiri, is being marketed by CBRE brokers James Lee and Deborah Dowling and is for sale by deadline private treaty closing on Wednesday November 17 at 3pm, unless sold prior.
The property is 100 per cent occupied by Future Skills Academy, a well-established and highly regarded education and training provider that has been operating for over 20 years, offering courses backed by the Government.
Its Wiri site offers healthcare, building and construction and trades programmes with purpose-built workshops for trades and a simulation room for healthcare, says Lee.
Start your property search
“Future Skills Academy has an excellent reputation for offering quality training in key industries including healthcare and construction, which are both crucial sectors where trained workers are in high demand nationally.”
The academy, which has another campus at Royal Oak and an international campus in Auckland CBD, is recognised both locally and internationally for its qualifications, which are government regulated and subsidised by the Tertiary Education Commission.
It offers a range of qualifications up to diploma level, Lee says.
“The academy was founded in 2001 to give young people in Auckland better opportunities for education and employment. Its excellent reputation makes it a sought-after option for students and teachers, with a founding aim of transforming the quality of people’s lives through education.”
Future Skills Academy, which has occupied the property since 2013, has just signed up for a new eight-year lease returning net $540,000 a year, with four further rights of renewal of four years each. Built in rental growth is also included, says Dowling.
“For investors looking for a passive, hassle free holding in the current supply-starved market, this asset will be considered a compelling proposition.
"With the tenant having demonstrated its commitment to this property through signing up to a new lease, it makes a fantastic long term income earner with an excellent tenant covenant.”
The building, which contains 3293sqm of floor area, was originally a large warehouse facility which was renovated and reconfigured to accommodate Future Skills Academy’s requirements in 2013.
“There is also long term upside potential including the opportunity to convert the property back to a distribution facility or other industrial premises or even redevelopment in the future if required,” Dowling says.
The building houses a number of classrooms, offices, meeting rooms, specialist training rooms and amenities, with high stud and low stud workshop space to the rear of the building.
A café/function area on the ground level provides a social hub for students.
The 2730sq m freehold site is on Light Industry-zoned land with 28 on-site carparks and two vehicle access points.
It is situated within the well-established industrial and commercial precinct of Wiri, close to the motorway network, Manukau Station and Manukau City Centre, says Lee.
“Wiri is a highly popular business location, owing to its close proximity to the Manukau commercial centre, Auckland Airport and motorways. This has resulted in it being a location of choice for many medium and large-scale occupiers including The Warehouse, Goodman Fielder, Americold, Kmart and Downer.”
- Article supplied by CBRE
