Parnell property has prominence and potential

This four level building is for sale at 9 Augustus Terrace, Parnell.

A prominent four level Parnell office block situated on a large 2013 sq m freehold site with strong add value potential and offering stunning city and harbour views has been put on the market for sale.

"The building at 9 Augustus Terrace is less than 200 metres from Parnell Rise," says Andrew Reed of Colliers International who, with colleagues John Green and Jason Seymour, is offering the property for sale by deadline international private treaty closing at 4 pm on Thursday March 19 unless it sells beforehand by negotiation.

"Constructed in the late 1960s, the building was extensively refurbished and upgraded in 2008 which took the property to a seismic rating of 67 per cent of New Building Standard." "The upgrade included a two storey addition along Eglon Street."

Reed says this property has multiple appeal due to its Parnell location, wide northern aspect, strong tenancies in place and its future add-value ability for either refurbishment or redevelopment.

"This will be an attractive opportunity for purchasers looking for an investment in one of Auckland's most sought after locations," he says. "The income is secured by high quality tenants, and the property has significant potential for long term capital appreciation offered by its Mixed Use zoning."

Tenants, Jasmax Architects and Gameloft New Zealand, provide a net rental income of $1,095,87 a year and a weighted average lease term of about five years.

Jasmax is one of New Zealand's largest architectural firms that has been engaged in numerous award winning projects such as Te Papa: The Museum of New Zealand and Auckland's Britomart transport Centre. It is well established in its industry and its open plan offices are fitted out to a high quality modern finish.

Gameloft New Zealand is a production studio delivering video games on mobile platforms. and employs 100 staff as the largest video games editor in New Zealand. The Gameloft parent company generates more than $150 million in annual revenue.

The building contains 3762 sq m of net lettable area, with basement parking below three office levels.

"However, there is the possibility to create up to four levels within the 16.5 metre height limit allowed for a new development under the proposed Auckland Unitary Plan," Reed says. "There is also the capacity for a basic floor area of two to one and a maximum of four to one giving the potential to develop between 4000 and 8000 sq m of gross floor area, subject to the current leases."

He says the property is expected to attract strong interest from family trusts, institutional buyers and high net worth individual buyers from New Zealand, Australia and Asia.

Permitted activities in the current and proposed Auckland district Mixed Use zonings provide multiple uses of the site including education, retail and entertainment facilities, residential units, restaurants and offices.

Green says the location has as much strategic value as it does scenic value.
"The north, east and west aspects offer expansive views of the Harbour Bridge, Rangitoto Island and Auckland city's skyline.

"In past years the central Auckland area attracted more of the city's new restaurants and cafes, but attention is now returning to Parnell. It's New Zealand's oldest suburb and is renowned for its historic buildings, beautiful parks, galleries, cafés, restaurants and boutique stores. Lately it has become more popular with young professionals who want to be part of a thriving urban community. Parnell has one of the most affluent demographics in the city, and the latest census figures show the area is growing quickly," Green says.

Seymour says Parnell has all the advantages of a CBD site, but with plenty of on-site parking and better motorway access.

"It has exceptional public transportation links and is within walking distance of the CBD. The suburb is linked to the city and the wider Auckland suburbs via rail and bus services and has immediate access to all of Auckland's motorway systems via Parnell Rise and Stanley Street. Additionally Auckland Transport has proposed a new station for Parnell to the east of nearby Auckland Domain on Cheshire Street."

Seymour says 9 Augustus Terrace is one of the best and largest properties to become available in this area for some time. "As a target investment area for a purchase in Auckland, Parnell is hard to beat, and the rejuvenation and improving infrastructure will add significant value to the land holding over time," he says.