A multi-level office property that is home to Orion Health in the sought-after Auckland city fringe suburb of Grafton is being presented to the market for sale.
Orion House, located at 181 Grafton Road, is a fully leased investment opportunity that offers 4,286sqm of total net lettable area across two interconnected structures on a sizeable 2,998sqm landholding.
Investors will recognise the strength of the tenant covenant, making this a truly appealing passive investment opportunity.
The property generates a total net annual rental income of $1,698,736 plus GST, with Orion Health’s current lease extending until 2028. The lease includes three additional rights of renewal, each spanning five years.
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Positioned on a highly visible corner site, the building has triple street frontage, ensuring significant exposure in a tightly held location. There are 87 covered and secure basement car parks providing further convenience as well as an established on-site cafe.
Colliers Directors Blair Peterken, Josh Coburn, and David Burley have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 14 September, unless sold prior.
Originally constructed in the 1970s, the interconnected buildings have been meticulously maintained under the current ownership, with ongoing capital expenditure to ensure operational efficiency. The current fit-out is modern and functional for the existing occupants.
Peterken, Director of Capital Markets at Colliers, says Orion Health, a New Zealand-based global company that specialises in digital healthcare software, are a blue-chip tenant that will be attractive for investors.
“The current occupants have firmly established themselves in this prime location and the full term of their lease agreement takes them through to 2043 if all rights of renewal are exhausted,” Peterken says.
“The lease offers favourable terms for buyers with future market and CPI rent reviews in place, ensuring ongoing rental growth.”
Benefiting from its exposure to Khyber Pass Road and its position without neighbouring properties to the north, east, and west, the asset holds potential for additional income through signage opportunities.
The property is zoned Business – Mixed Use Zone under the Auckland Unitary Plan. This zoning’s future flexibility adds to its appeal, particularly for buyers with long-term development prospects.
Coburn, Director of Site Sales and Capital Markets at Colliers, says the future of the property may lie in a potential repositioning given the strong underlying land value.
“The interconnected buildings would allow flexibility for independent re-leasing or options during any proposed development. The Mixed Use zoning opens doors to various possibilities including commercial, residential, retail, hospitality, education, medical, or entertainment uses,” Coburn says.
“With its favourable proximity to Auckland’s CBD and a host of popular surrounding suburbs such as Newmarket and Mount Eden, this property is one that has extensive future potential while doubling as an astute asset in the short to medium-term.”
Grafton benefits from easy accessibility via the surrounding motorway network and public transport, including a number of bus routes. The ongoing development of the City Rail Link will add another layer of convenience with Maungawhau Station (Mount Eden) in walking distance from the property.
Major institutions such as The University of Auckland, Starship Children’s Hospital, and Auckland City Hospital are all conveniently located nearby.
Burley, Auckland Director of Investment Sales at Colliers, emphasises the property’s proximity to an array of popular amenities.
“Transport options, gyms, bars, restaurants, and shopping options are at the property’s doorstep, while Westfield Newmarket, one of Auckland’s premier retail destinations, is less than 2km away,” Burley says.
“This property is a premier asset that will generate strong interest in the market, and we invite all interested parties to reach out to us immediately to explore their options.”
- Article supplied by Colliers
