Towering opportunity near CBD

The property is in the Quay Park business district next to Vector Arena, and well served by public transport. Photo / Supplied

Surrounded by high-profile neighbours and close to Auckland's expanding Britomart quarter, a two-building modern office development in the Quay Park precinct is being marketed for sale by Colliers International.

The seven-level building at 32 Mahuhu Crescent and its adjoining six-level neighbour at 34 Mahuhu Crescent were completed in 2002 on a 2640sq m, 150-year leasehold site.

"The buildings are connected together in a park-like setting that is the hallmark of the area," says Colliers director Peter Herdson, who is marketing the property for sale by private treaty, closing on Thursday, June 3, with colleagues Jason Seymour and John Goddard.

"Both buildings share a common basement containing 69 carparks and a central core with three-lift access and two sets of stairwells," Herdson says.

The towers offer a total of 7254.6sq m of net lettable space with key tenants in the building including Nokia Siemens Network NZ Limited, CMA CGM & ANL Agencies (NZ) Limited and Rayonier NZ Ltd.

Nokia, one of the world's largest telecommunications hardware, software and services companies, occupies 13.3 per cent of the office area and has the naming rights on the 32 Mahuhu Crescent building.

CMA CGM & ANL Agencies is one of the world's largest container shipping companies and holds the naming rights on 34 Mahuhu Crescent with a lease for 14 per cent of the office area.

The third key tenant, Rayonier NZ Limited, is a leading international forest products company with three core businesses comprising timber, real estate and performance fibres. With stock traded on the New York Stock Exchange, the company has offices on three continents and more than 1800 employees. Rayonier occupies 11.8 per cent of the building on a new nine-year lease that will begin in June 2010.

"The complex has an impressive tenant profile, which also includes Laser Institute, Swann Group, International SOS and Talking Tech," Herdson says.

"It has an overall weighted average lease term of 4.6 years and current net passing income of $2,275,984 per annum. The property also offers guaranteed rental growth on some leases, bucking recent leasing trends by attracting high-quality occupiers."

Seymour says the property has an excellent profile, with wide exposure to Quay St, occupying a prominent position in a fast-growing and emerging city commercial location dominated by well-known brands like GE and BNZ.

"This is a great opportunity to buy into an outstanding property adjacent to the Vector Arena and just minutes away from the CBD," Seymour says.

Positioned just to the east of the city's retail centre, the Quay Park precinct comprises a relatively new business district that has sprung up over the past 10 years in between Britomart and the Vector Arena.

Development activity in the Quay Park area has seen the old railway station converted into student accommodation, the Quay Park Surgical Centre opened fronting Beach Rd, and a number of apartment developments completed, including The Landings, QuBA, The Docks and Hudson Brown.

Seymour says the area is serviced by a Countdown supermarket at Britomart.

"Numerous shops, cafes, apartments, businesses and a new public square are being created to link the Central Business District with the waterfront," he says.

"The fact that major businesses are investing heavily in new offices in this part of the city is a positive sign and the more attention that is focused on this part of the city, the more attractive Mahuhu Crescent becomes to its occupiers."

Being close to the Britomart transport centre, 32-34 Mahuhu Crescent is well served by public transport which is being viewed as an increasingly important factor by tenants.

"Rail networks are improving with more stations being built across the city, and the Government is placing further resources and emphasis on infrastructure development. As a result, many companies are viewing offices close to the CBD as attractive options, from the perspective of their employees and for management itself."