Unitec sale kicks off new bid for syndicated properties

Elevated view of the Unitec Institute of Technology's North Shore campus at 10 Rothwell Avenue, Albany. Photo / Supplied

Colliers International's marketing of the Unitec Institute of Technology's North Shore campus launches a new "strategic commitment" by the agency to the sale of syndicated properties, says chief executive Mark Synnott.

The campus at 10 Rothwell Ave, Albany, is being sold to investors by Commercial Investment Properties under a "proportionate ownership" scheme.

Subscribers may apply to buy one or several of the 173 titles, which are available at $50,000 each through Tim Lichtenstein and Charlie Oscroft of Colliers International.

Each title represents an equal proportion of the registered freehold title on the land and building.

The closing date for subscribers is Friday, November 25, Synnott says.

"The Unitec offering is part of our strategic commitment to building the company's proportionate ownership business nationally, bolstered by the expertise and database support in our Auckland CBD office," he says.

"Rather than handling proportionate ownership sales on a reactive basis regionally as we have in the past, we have decided to make a strategic focus at a national level to proactively drive an increase in our market share of the New Zealand syndications business.

"With over 350 Colliers International commercial property staff in 13 offices in New Zealand, our distribution channels are well-positioned to co-ordinate and tap into the proportionate ownership market."

The company has marketed the sale of several syndicated properties around New Zealand over the past three to five years, most recently the Farmers building in Hastings and the Airways Building in Christchurch.

A projected 10 per cent pre-tax annual cash return is on offer for subscribers to the Unitec syndication, plus income growth every second year through rent reviews to the consumer price index plus 2 per cent. The property is fully let to Unitec on a new seven-year lease which began in July, with rights of renewal extending the term to 16 years. Total net rental is about $1,230,000.

Lichtenstein says he expects the Unitec scheme to appeal to existing syndication owners from Auckland and around the country, as well as individuals and small family trusts.

"Investors who have bought into syndication offerings previously and are looking to diversify into the education property sector will likely be interested in the property, likewise investors from outside Auckland who are looking to buy into its market."

Oscroft believes the scheme's hassle-free nature will be a big drawcard for many.

"The management contract is in place and the property is fully tenanted by a stable, long-term occupier, giving buyers a ready-made commercial property investment which they can put away, forget about and enjoy the income."

The modern, well-presented industrial property comprises a big 10,215sq m floor area on a 1.4ha site. Two levels of offices are at the front of the building, with a large high-stud warehouse to the rear. There are 131 on-site carparks and attractive landscaping.

The property is within the North Harbour Industrial Precinct. Oscroft says Unitec temporarily established a campus in Takapuna while it researched the most suitable location for its new North Shore campus. Owing to its demand and forecast growth, Unitec picked the Rothwell Ave site because of its efficient access to both the Northern and Western Motorways, extensive public transport links and the building's quality.

"The site and its central North Shore location is well positioned for Unitec's planned growth," he says.

Unitec is New Zealand's largest institute of technology and educates over 23,000 students from more than 80 countries at its four Auckland campuses. It reported an $8.8 million surplus in the year to last June.

Its North Shore campus is intended to give residents, industry and high schools throughout the North Shore and Rodney district access to vocational education and training. It offers students industry-relevant certificate and diploma qualifications to help them to get a job, apprenticeship or continue training.