Colliers Portfolio 2021 | Issue 5

Colliers Portfolio

Issue 5 2021

Units A, B, C & E, 7-19 Croftfield Lane, Wairau Valley, North Shore For Sale by Deadline Private Treaty

Accelerating Success 1

Welcome to Colliers Portfolio Issue 5 Welcome to the fifth Colliers Portfolio for 2021 featuring a premium collection of investment, development and owner-occupier properties from across New Zealand.

In this edition, find our latest collection of commercial properties throughout New Zealand, including sought-after, high-yielding industrial opportunities in South Auckland, mixed-use investments, and a diversified asset with five established tenants on the North Shore.

Whether you’re looking for commercial, retail or industrial assets, our national sales team has a range of options and looks forward to hearing from you.

Gareth Fraser Auckland Director | Investment Sales

Contents

2

Recent Portfolio Sales

03

Front Cover Feature - Units A, B, C & E, 7-19 Croftfield Lane, Wairau Valley, North Shore

04

Featured Properties

- Premium Listings

- Key Listings

06 15

Featured News & Research

24

Featured Brokers

28

Recent Portfolio Deals SOLD

3 Rennie Drive, Māngere Sold by Ash Vincent & Mitch Broderson | Colliers Auckland South

SOLD

74 Richard Pearse Drive, Auckland Airport Sold by Brad Johnston & Paul Jarvie | Colliers Auckland South

SOLD

399 Cameron Road, Tauranga Sold by Simon Clarke & Duncan Woodhouse | Colliers Tauranga

SOLD

33 Fairfax Avenue, Penrose Sold by Ben Cockram & Hamish West | Colliers Auckland South

SOLD

SOLD

6-8 Taylors Road & 2-4 Gordon Road, Morningside Sold by Jonathan Lynch & Matt Prentice |Colliers Auckland & North Shore

SOLD

24D Andromeda Crescent, East Tāmaki Sold by Greg Watson, James Dickey & Josh Franklin | Colliers Auckland South

SOLD

209 Valley Road, Mount Maunganui 4155 Great North Road, Glen Eden Sold by Shoneet Chand & Caroline Cornish | Sold by Grant White & Simon Clark | Colliers Tauranga Colliers North Shore & Auckland West

Congratulations

Licensed REAA 2008

to our 2021 REINZ award winners Auckland South Medium Commercial & Industrial Office of the Year

Auckland North Small Commercial & Industrial Office of the Year

We thank our clients for their continued trust and confidence in us.

Greg Goldfinch Commercial & Industrial Salesperson of the Year

Calum Ironside Commercial & Industrial Rising Star of the Year

3

Front Cover Feature

BOUNDARY LINES INDICATIVE ONLY UNIT D (12 BASEMENT CAR PARKS) IS EXCLUDED FROM THIS OFFERING

New 10 Valley year lease to Countdown Wairau Opportunity

Flagship North Shore Investment

Units A, B, C & E, 7-19 Croftfield Lane, Wairau Valley, Auckland For Sale by Deadline Private Treaty closing Wednesday 3 November 2021 at 4pm (unless sold prior)

Returning $861,248.85 pa net + GST

Rare North Shore opportunity

3,276m² NLA + 145 car parks (82 basement)

4 titles provide future flexibility

Excellent motorway exposure

Strategically positioned in one of North Shore’s most tightly held commercial precincts is this unbeatable investment opportunity that must be seriously considered.

Anchored by listed covenant The Warehouse Group, the offering is underpinned by five established tenants returning $861,248 pa net, across four separate titles.

Featuring excellent motorway exposure, the site also benefits from easy access off the Tristram Ave interchange via Croftfield Lane and is surrounded by well-known national and international brands including Harvey Norman, JB Hi-Fi & Briscoes to name a few.

Investments of this calibre are rarely offered to the market anywhere in Auckland - don't miss out! *Unit D (12 basement car parks) is owned separately and not included in this offering.

Shoneet Chand 021 400 765

Matt Prentice 021 464 904

www.colliers.co.nz/p-nzl67016106

4

National tenants anchor prominent Wairau Valley bulk retail site Units A, B, C & E, 7-19 Croftfield Lane, Wairau Valley, North Shore A highly prominent bulk retail development anchored by blue-chip national tenants in one of the North Shore’s most tightly held commercial precincts represents an unbeatable purchasing opportunity for investors to pursue.

The strategically located property at 7-19 Croftfield Lane in Wairau Valley has an impressive total net lettable area of 3,276sq m, providing a total net annual rental income of $861,249 plus GST. Warehouse Stationery is the main anchor tenant occupying Unit A, with fellow blue-chip tenants Curtain Studio and Morgan Retail in Units B and C. The investment also provides a total of 145 car parks, of which 82 are in the basement. The property is currently split into four separate unit titles, providing future flexibility for the new owner.

Colliers Directors Shoneet Chand and Matt Prentice have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 3 November, unless sold prior.

Warehouse Stationery has become a household name by revolutionising the stationery retail business in New Zealand. The company opened its first store in Wairau Park in 1991 and has now grown to operate from more than 70 locations nationwide.

The current lease agreement expires in December 2023, with a further right of renewal for six years providing a final expiry in December 2029. Annual rental income is approximately $452,047 plus GST. A CPI rent review is scheduled for December 2023, while a market rent review based on the greater of either market rent capped at 10 per cent or CPI will take place in 2026.

Curtain Studio are experts in curtains and blinds and offer both readymade and custom-made products of superior quality and great value. They are in the midst of a six-year lease with a final expiry in January 2024 with CPI reviews due in February 2022 and the following year. The annual net rental income is $184,000 plus GST. The tenant in Unit C is furniture importer and wholesaler Morgan Furniture, home of the one and only original La-Z-Boy Recliner.

They hold an eight-year lease that expires in June 2026 with two further rights of renewal of four years each, which include market rent reviews on renewal.

The current net annual rental income is $191,017 plus GST with 2 per cent annual increases, except on market rent review dates with the next review due in June 2022.

Chand, Director of Investment Sales at Colliers, says this site is one of the most exciting investment opportunities to arrive on the market this year.

“It is extremely rare to see a property of this size become available in such a prominent position in Wairau Valley,” Chand says.

“The building is well-placed with a strong tenant covenant with favourable lease terms, meaning it shapes as an ideal split-risk investment, providing immense security for buyers looking for premier assets to acquire.

“The building is positioned right next to State Highway 1 making this a highly visible asset for passing motorists and the site benefits from easy access via the Tristram Avenue interchange.”

Prentice, Director of Industrial Sales and Leasing at Colliers, says Wairau Valley is a growing retail hub that has experienced huge expansion.

“This site enjoys convenient access from the Northern Motorway with the CBD approximately 15 minutes away in normal driving conditions, while it is readily-accessible to other parts of the North Shore,” Prentice says.

“Wairau Valley is characterised by a mixture of bulk retail developments alongside smaller retail shops, and automotive outlets, but this property represents one of the standout offerings in the area.”

The Property is zoned as Business - General Business Zone under the Auckland Unitary Plan. This zoning provides for business activities from light industrial to limited office, large format retail and trade suppliers.

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Best Value Industrial Land in Auckland

Entry Level Industrial Land Opportunity in Waiuku Collingwood Road, Waiuku For Sale with land rates starting from $280/m²

I/O Area with high growth potential

Lots available range from 1,000m² 9,700m²

Value offering for investors and owner occupiers

%

Secure your lot with a 10% deposit and balance on settlement

Titles expected mid 2022

Earthworks are well underway on Stage 1 of the Fernleigh Industrial Estate which is comprised of 34 ready-to-build land lots ranging from 1,000sqm - 9,700sqm, there are very limited size options currently remaining.

The lots are zoned Business - Light Industrial, which includes light manufacturing, production, logistics, storage, transport and distribution activities.

The Fernleigh development has been masterplanned to be a fully integrated industrial precinct with all works being undertaken by the developer including services and roading, enabling construction on individual sites to commence immediately upon settlement. Titles are expected mid next year.

Matthew Barnes 021 828 563

Tony Marsh 021 141 2072

fernleighindustrial.co.nz 6

3 prime CBD Tauranga development sites

Sold individually or as a whole 145 - 159 Durham Street, Tauranga For Sale by Deadline Private Treaty closing Thursday 11th November at 4pm (unless sold prior)

Substantial holding income

Three sites 2,401m²

Prime CBD location

2,127m² buildings

Adjoining University

Commercial zone

This is a unique large landholding held in three titles and situated in the heart of CBD Tauranga, adjoining the new university campus and surrounded by new development projects. The property has value as either three smaller sites with substantial buildings to redevelop or renovate for owner occupiers and investors or as a more comprehensive development of the whole site as a high rise office, apartments or student accommodation. There is already a 56m (12 storey) building consented over two of the sites.

Currently 145 Durham is held in 8 strata Freehold Titles and includes a 1,029m² site with six residential terraced houses with basement carparks leased to the university. There is also a two level road frontage building which is suitable for office and retail premises. 153 Durham is a vacant lot of 556m² (used for carparking) and the adjoining 159 Durham is a substantial single level 700m² building also suitable for retail and office uses.

Rich Davidson 027 860 9338

Simon Clark 021 959 710

colliers.co.nz/p-NZL67016547 7

BOUNDARY LINES INDICATIVE ONLY

Mixed-use Investment For Sale

Essential Investment + 3 Bed Apartment in Milford

31 Shakespeare Road, Milford, Auckland For Sale by Deadline Private Treaty closing Wednesday 3 November 2021 at 4pm (unless sold prior)

Essential Service longstanding Vet clinic

Total income potential $152,620 pa

4 Year initial term + 3 x 3 year ROR’s (clinic only)

Modern 106m² 3 bed/2 bath apartment

Freehold land area – 1,146m² with 9 car parks

Rarely are properties of this calibre offered to the market in Milford. Featuring a longstanding vet clinic on a long term lease which has been in occupation at this property for over 24 years, and a modern 3 bedroom, 2 bathroom first floor apartment with 2 car parks, this is a mixed use investment that demands serious consideration.

The popular veterinary clinic which is an essential service and fully operational over lockdown has recently been purchased by Animates Holdings Ltd - New Zealand’s leading pet retail store. They are committed to a long term lease with a net commencement rent of $108,680 pa over net lettable area of 774.2m² + seven car parks, showing excellent long term upside. The modern, 106m² first floor apartment has been tastefully renovated in 2016 and features three well-proportioned bedrooms and two quality bathrooms.

Centrally located on a 1,146m² fee simple title accessed from Shakespeare Road, the property is only a 3 minute walk to the Milford Shops and a short 15 minute stroll to Milford Beach.

Shoneet Chand 021 400 765

Matt Prentice 021 464 904

www.colliers.co.nz/p-nzl67016573

8

BOUNDARY LINES INDICATIVE ONLY

Childcare Investment For Sale

Brand New Investment 15 Year Lease + Bank Guarantee 45 Greenhithe Road, Greenhithe, Auckland For Sale by Auction at 11am, Wednesday 27 October 2021 (unless sold prior)

Returning $206,336 pa net (approx) with annual fixed increases

15 Year lease commencing Oct 2021 + ROR’s

Experienced operator with multiple centres

997m2 freehold title in prime North Shore location

120 metres from Greenhithe School

Perfectly positioned on a 997m² freehold site directly across from the Greenhithe Pony Club and 120 metres away from Greenhithe School, is this top quality childcare investment we are exclusively offering for sale by Auction on 27th October 2021 (unless sold prior).

Featuring a new 15 year lease term to an experienced operator and a modern, brand new building, this is an exceptional bottom drawer investment in a tightly held Auckland location. The early childhood education sector in New Zealand benefits from substantial government support and is proving to be a highly sought after investment class.

Returning $206,336 pa net + GST & OPEX, the lease offers fixed rental growth with annual increases of between 2% - 2.5% per year, as well as market reviews throughout the lease term and a final expiry in 2056. The lease is further supported by personal guarantees from three directors and a 12 month bank guarantee for Rent & OPEX.

Shoneet Chand 021 400 765

Matt Prentice 021 464 904

www.colliers.co.nz/p-nzl67016504

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BOUNDARY LINES INDICATIVE ONLY

Development Opportunity

1,849m² Mixed Use North Shore Development Site

50 Northcote Road, Northcote, Auckland For Sale by Deadline Private Treaty closing Wednesday 10 November 2021 at 4pm (unless sold prior)

Z 1,849m² flat freehold title

Rectangular site on busy main road

Residential Potential with Mixed Use Zoning

High growth location

Vacant Possession

Strategically positioned on a high profile main road with over 25,000 cars passing daily, 50 Northcote Road is an exceptional development opportunity in a sought after North Shore location.

Featuring a rectangular, flat, 1,849m² freehold title, the site is ideal for commercial and residential developers, owner occupiers and land bankers. With coveted Mixed Use Zoning, the site lends itself to a multitude of different uses under the Unitary Plan, including intensive residential development.

Located metres from many key North Shore Landmarks including Northcote Town Centre, Smales Farm, North Shore Hospital and the State Highway 1 Motorway interchange, the site is only 12 minutes from Auckland’s CBD in off-peak traffic.

Shoneet Chand 021 400 765

Matt Prentice 021 464 904

www.colliers.co.nz/p-nzl67016628

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BOUNDARY LINES INDICATIVE ONLY

Investment Opportunity

High Profile Beachside Investment with 10 Year Lease 961 Beach Road, Torbay, Auckland For Sale by Auction at 2pm, Wednesday 10th November 2021 (unless sold prior)

Z Returning $190,000 pa net

Fixed annual 2% rent increases

10 year lease from April 2021 + ROR’s

1,181m² corner freehold title

Business – Mixed Use Zoning

Positioned in a high profile position in a tightly held North Shore location, 961 Beach Road is the ideal, passive beachside investment.

Returning $190,000 with 2% fixed annual rent increases and a 10 year lease to Gull New Zealand from April 2021, the lease also offers two further rights of renewal with a final lease expiry in April 2041.

Occupying a 1,181m² freehold corner site, the site is underpinned by valuable Mixed Use Zoning, which allows commercial and residential development. Given its elevated position, any development would benefit from exceptional sea views, and close proximity to popular Torbay town centre and Long Bay beach.

Investments of this calibre are rarely offered to the market and highly sought after. Contact either of the sole agents for further information, or to register your interest.

Shoneet Chand 021 400 765

Matt Prentice 021 464 904

Mike Ryan 021 402 461

www.colliers.co.nz/p-nzl67016623

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Boundary lines are indicative only

Boundary lines are indicative only

Large 22,825m² Land Holding

Big Thinking 6-8 Fort Richard Road, Otāhuhu, Auckland For Sale by Deadline Private Treaty closing 4pm, Thursday, 11 November 2021 (unless sold prior)

Z Significant freehold site - 2.2ha

Mixed-Use zoning

Returning $1,438,925 net pa + GST

Growth location

Huge development potential

Access from January 2023

6-8 Fort Richard Road and 581 Great South Road provide a sizable, exceptionally rare and well-located Mixed-Use offering with substantial holding income of $1,438,925 p.a. The site’s size and proximity to local transport nodes, surrounding industrial and residential areas and amenity make for a compelling site to suit a wide range of Investor, Occupier and Developer interest.

The opportunity comprises a significant 22,825m² Mixed-Use site spread over multiple freehold titles. The potential for dual access via 581 Great South Road and 6-8 Fort Richard Road is an asset of this site’s location and positioning. Majority of the existing 11,857m² of improvements have undergone recent refurbishment with a substantial portion being re-clad and re-roofed in colour steel.

Greg Watson 021 083 13534

Greg Goldfinch 021 537 682

Paul Higgins 021 549 226

colliers.co.nz/p-NZL67016470 12

Gareth Fraser 021 242 677

Large development site in Te Atatū Peninsula 3 Pringle Road, Te Atatū Peninsula, Auckland For Sale by Expressions of Interest closing 4pm Thurs 21 Oct 2021 (unless sold prior)

Z Site Area 8,141m²

Business Town Centre zoning

27m height overlay

244m street frontage

Premium address

Located in the heart of the popular residential suburb of Te Atatū Peninsula this is a prime opportunity to acquire one of the largest residential development sites remaining in a sought after area. Te Atatū Peninsula is currently in the midst of a real estate boom, thanks to its favourable demographics, surrounding amenity and location. This 8,141m² Town Centre zoned site offers a 27m height overlay opportunity to facilitate increased intensification, including office and residential activities at upper floors.

Blair Peterken +64 21 421 426

Josh Coburn +64 21 990 691

Peter Herdson +64 21 654 323

www.colliers.co.nz/p-NZL67016352

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Property Portfolio for Sale - Buy One or All For sale by Deadline Private Treaty closing 4pm, Friday, 5 November 2021 (unless sold prior)

818 Great South Road, Penrose •

4,330m² land area

•

2,335m² net lettable area

•

Heavy Industry zoning

•

18,200+ vehicles per day

•

Prime corner site

•

Seconds from SH1

•

Returning $420,000 net p.a. + GST

Boundary lines are indicative only

Hamish West +64 21 882 737

colliers.co.nz/p-NZL67016541

62 Allens Road, East Tāmaki •

7,550m² land area

•

2,796m² net lettable area

•

Heavy Industry zoning

•

14,600+ vehicles per day

•

High profile location

•

Low site coverage

•

Returning $540,000 net p.a. + GST

Boundary lines are indicative only

colliers.co.nz/p-NZL67016535

Paul Higgins +64 21 549 226

146-158 Cavendish Drive, Wiri •

3,000m² land area approx.

•

1,132m² net lettable area

•

Light Industry zoning

•

11,800+ vehicles per day

•

Car retailer's dream

•

Multiple titles

•

Returning $300,000 net p.a. + GST

Boundary lines are indicative only

colliers.co.nz/p-NZL67016540

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Mitch Broderson +64 21 166 7225

Three Passive Commercial Investment Opportunities

Landmark Investment 8 Lakewood Court, Manukau, Auckland For Sale by Asking Price

WALE Strong market income + fixed growth

Ryan Gibb 021 826 421

Significant tenant improvements

Outstanding tenant covenant

Matthew Barnes 021 828 563

Nine Years

• • •

Fitness Club - $6,000,000 (5.99%) Head Office - $3,200,000 (5.72%) Sales Office - $1,500,000 (5.79%)

Alan McMahon 021 677 886

colliers.co.nz/p-NZL67015613

Boundary lines are indicative only

Industrial for Sale

Investment on Highbrook’s Doorstep 7B Ra Ora Drive, East Tā āmaki For Sale by Auction to be held at 11am, Wednesday, 3 November 2021 (unless sold prior)

NLA Premium industrial location

Greg Watson 021 083 13534

Functional property with ample yard

Only 1 of 2 in the complex

Returning $71,800 net p.a. + GST

557m² total floor area plus secure yard

Josh Franklin 021 990 714

colliers.co.nz/p-NZL67016458 15

Boundary lines are indicative only

Location, location, location!

Dual Access Land in Penrose

16 Bassant Avenue, Penrose

18 A & B Greenpark Road Avenue, Penrose

NLA 1,550m² freehold site

500m² (approx.) net lettable area

30% site coverage

Add-value/ development opportunity

2,699m² site

Two freehold titles

Dual street access

Add-value/ development opportunity

For Sale by Deadline Private Treaty closing 4pm, Wednesday, 3 November 2021 (unless sold prior)

Hamish West 021 882 737

James Dickey 021 026 81093

Ben Cockram 021 245 5855

Boundary lines are indicative only

Strategic Long-Term Investment

East Tāmaki Beauty 20‑24 Lorien Place, East Tamaki For Sale by Deadline Private Treaty closing 4pm Tuesday 2 November 2021 (unless sold prior)

NLA Two freehold titles totalling 19,916m²

Todd Kuzmich 021 410 774

7,617m² NLA over three buildings

Greg Goldfinch 021 537 682

colliers.co.nz/p-NZL67016169 16

33% (approx.) site coverage

Brand new long‑term lease to established multi‑national tenant

Returning $1,000,000 net p.a. + GST

Boundary lines are indicative only

Industrial Investment with Future Upside

Ultimate Position, Endless Opportunities 169 Captain Springs Road, Onehunga For Sale by Auction to be held at 11am, Weds, 10 November 2021 at Colliers CBD (unless sold prior)

Z

NLA 2,499m² floor area

Ben Cockram 021 245 5855

3,332m² freehold site

Hamish West 021 882 737

Mixed Use zoning

Returning $246,000 net p.a. + GST

Next to Te Papapa Station

James Dickey 021 026 81093

colliers.co.nz/p-NZL67015916

Boundary lines are indicative only

Industrial for Sale

Ripper on Rosebank 326 Rosebank Road, Avondale For Sale by Auction to be held at 11am, Weds, 10 November 2021 at Colliers CBD (unless sold prior)

1,575m² freehold site with a net lettable area of 561m²

Dhiru Patel 021 340 780

Suitable for owneroccupiers or investors

Excess land provides a development opportunity

Rare size in the Rosebank industrial precinct

Affordable price bracket

Amir Bashota 021 075 5954

colliers.co.nz/p-NZL67016467 17

An excellent opportunity to secure a large residential development site

Development Land 12.6ha 102 Walton Park Avenue, Fairfield, Dunedin For Sale by Deadline Private Treaty closing Wednesday 17 November 2021 at 4pm (unless sold prior)

12.6ha

Residential development opportunity

Potential for 100+ sections

Easy access to Southern Motorway

Zoned General Residential 1

Matt Morton 021 577 800

colliers.co.nz/p-NZL67016499

Boundary lines are indicative only

Industrial for Sale

Once In A Life Time - 2.2ha In Mount Wellington 151C Marua Road, Mt Wellington, Auckland For Sale by Deadline Private Treaty closing 4pm, Wednesday, 14 October 2021 (unless sold prior)

NLA 22,166m² freehold site

Hamish West 021 882 737

8,125m² net lettable area

Ben Cockram 021 245 5855

colliers.co.nz/p-NZL67015870 18

Obvious development potential

David Burley 021 478 225

Low site coverage

Part vacant

Boundary lines are indicative only

Industrial for Sale

Perfect Freehold Industrial - Occupy or Invest 29 Lorien Place, East Tā āmaki For Sale by Auction to be held at 11am Wed 3 November 2021 at Colliers Highbrook (unless sold prior)

Z

NLA 1,180m² floor area

Paul Higgins 021 549 226

3,787m² freehold site

Returning $160,000 net p.a. + GST

Occupy or invest

Light Industry zoning

James Dickey 021 026 81093

colliers.co.nz/p-NZL67016149 Boundary lines are indicative only

FUTURE DEVELOPMENT UNIT

9 ADDITIONAL CAR PARKS

Land/Development Site

Consented Corner Development in Mt Albert 5/11 Morning Star Place, Mt Albert, Auckland For Sale by Auction to be held Wednesday 20 October 2021 at 11am (unless sold prior)

Z Consented mixed-use development

High profile corner site opposite St Luke’s

Strategic central Mt Albert location

Jonathan Lynch 021 900 611

Ned Gow 021 122 2731

Gawan Bakshi 021 31 31 48

Ample car parking across 2 titles

Flexible mixed-use zoning

342m2 site area plus carparks

colliers.co.nz/p-NZL67016270

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Boundary lines are indicative only

Land/Development Site - Location, Location, Location

Diamond in the Double Grammar Zone 189, 199 and 201 Mt Eden Road, Mt Eden, Auckland For Sale by Expressions of Interest closing Wednesday 20th October 2021 at 4pm (unless sold prior)

Combined land area totaling 1,703m2

Jonathan Lynch 021 900 611

640m2 total building area

Three separate titles

Positioned in the highly coveted Double Grammar Zone

Explore various redevelopment options

David Burley 021 478 225

colliers.co.nz/p-NZL67016228

For Sale

Substantial Investment in Hastings CBD 244 Heretaunga Street West, Hastings, Hawke’s Bay For Sale by Deadline Private Treaty, closing 4pm Wednesday 13th October 2021 (unless sold prior)

NBS Current combined 11 year lease term to estimated net rental of anchor tenant $1.47m +GST per annum Farmers

Danny Blair 021 826 496

colliers.co.nz/p-NZL67016046 20

2 level retail premises with a total NLA of 6,689sqm

Grade A NBS Rating

High profile site

Land For Sale

Rare Greenfield Site, Hastings, Hawke’s Bay Hanui Road, Tomoana, Hastings, Hawke’s Bay For Sale by Expressions of Interest closing 4pm Thursday 14th October 2021 (unless sold prior)

Z 6.8040 hectares (more or less)

Improvements include roading and all services

Excellent transport links

Close to Hastings city centre

Zoned Tomoana Food Industry zone

Danny Blair 021 826 496

colliers.co.nz/p-NZL67016295

Industrial for Sale

A+ Industrial North Shore Investment Unit 3, 52 Arrenway Drive, Albany, Auckland For Sale by Auction to be held TBC October 2021 (unless sold prior)

Lettable area: 674 sqm + 10 carparks

Ryan de Zwart 021 575 001

Net rental $112,667 (average over 3 years)

Established tenant occupied for 9 years

New 3 year lease from 1 August 2021

Modern, attractive industrial building in a popular neighbourhood

Mike Ryan 021 402 461

colliers.co.nz/p-NZL67015994 21

Boundary lines are indicative only

Boundary lines are indicative only

Strategic Investment in Two Freehold Titles

Iconic Character at the Heart of Ponsonby Road 129-131 Ponsonby Road, Freemans Bay, Auckland For Sale by Deadline Private Treaty closing Wednesday 20 October 2021 at 4pm (unless sold prior)

Z Annual Income of $206,202 per annum

Jonathan Lynch 021 900 611

Reconfigure 187sqm Projected Annual retail to suit your Income of circa preference $270,000 per annum

Kris Ongley 021 657 687

Four apartments with substantial views

Six onsite carparks Popular Business Town Centre including four secure Zoning basement parks

Matt Prentice 021 464 904

colliers.co.nz/p-NZL67016258

Prime Wanaka Tourism – Commercial Opportunity 73 Brownston Street, Wanaka For Sale by Deadline Private Treaty

Central Location

1,012m² Freehold Site

colliers.co.nz/p-NZL67015945

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Tourism Development Potential

Vacant Possession

Barry Robertson 027 433 5941

Mountain Views

Steve McIsaac 021 680 304

For Sale - Occupy or Invest

Entry Level Project with Holding Income 6/354 Great South Road, Papatoetoe, Auckland For Sale by Auction to be held Wednesday, 3rd November 2021 at 11am (unless sold prior)

Holding income $28,000 p.a

Gawan Bakshi 021 31 31 48

Well entrenched long term retail tenant.

Significant Add-value Potential

High Profile Arterial Location

Business Town Centre

Ryan Gibb 021 82 64 21

colliers.co.nz/p-NZL67016134

Boundary lines indicative only

DEVELOPMENT SITE NEXT TO SYLVIA PARK

Rare as Hens' Teeth Development Site - 2374m² THAB Zone 248, 250 & 250A Mount Wellington Highway, Mount Wellington, Auckland For Sale by Auction to be held Wednesday 10th November 2021 at 11am (unless sold prior)

2, 374 sqm Total Site Area

Logan Roach 027 358 9383

Favourable Terraced Housing & Apartment Building Zoning

Gareth Fraser 021 242 6779

3 Separate Freehold Titles

Walking distance to Sylvia Park shopping centre, train station & motorway

Holding Income from residential tenancies

Charlie Oscroft 021 824 564

colliers.co.nz/p-NZL67016574 23

Featured News & Research New Zealand Research Report October 2021 Snippets New commercial lease clauses, construction costs and co-working This month we review recent government announcements on commercial leases, construction costs, office sector construction activity, and provide an update on Auckland’s co-working sector over the past year.

Government Proposes New Commercial Lease Rent Abatement Clause What has been proposed?

Earlier in the week, when introducing the Covid-19 Response (Management Measures) Legislation Bill, the government proposed to amend the Property Law Act 2007 by inserting a clause into commercial leases. The proposal noted that when there is an epidemic and the tenant is unable to access all, or part, of their leased premises due to health and safety reasons, that the landlord and tenant should negotiate for a ‘fair proportion’ of an abatement in rent and outgoings. The proposal indicates that this could take place from the 28th of September (inviting submissions on the date) and be enforced for the period of the epidemic, which in this case is up to the 19th of December 2021, which could potentially be extended.

Didn’t this happen in 2020?

The government looked to introduce a similar, albeit different, amendment in June 2020. It did not proceed, most seemingly a result of the coalition government at the time, with Winston Peters calling it “poorly targeted policy”. Also, many, but not all, landlords and tenants had or were already in the midst of negotiation given it was finally proposed in June after the country went into its first Alert Level 4 lockdown in March 2020.

So, what are some of the differences this time?

Apart from there being no coalition government this time, other differences include: • there has been a substantial time period put in place irrespective of Alert Levels • there isn’t a restriction on business size, previously it was 20 or fewer full-time staff at the leased premises the government is seemingly leaving it up to the landlord and tenant to agree on what is ‘fair proportion’

24

• suggested that if ‘fair proportion’ is not determinable, parties seek mediation or arbitration • parties could agree that the clause does not apply • would only apply to leases which do not already provide for adjusted rent payment terms during an epidemic emergency.

Was there guidance on what ‘fair proportion’ was previously?

Yes, there were some guidelines to assist with what ‘fair’ might look like, such as taking into consideration the levels of tenant income lost during the period the company could not trade fully, any landlord mortgage obligations, the previous years’ profitability of both parties, any financial assistance provided, the ability of both parties to survive financially and any other relevant factors. The government also provided $40 million for accessing dispute resolution services, which has now ended.

What about the ADLS lease clause 27.5?

Given many agreements utilise an ADLS lease, which has the 27.5 ‘no access clause’, discussion is arising that this could be considered a rent adjustment clause anyway. Further, there will already be many current agreements in place that will potentially supersede this proposal, which comes 1.5 years after Covid-19 was officially called a global pandemic by the World Health Organisation.

So, what now?

The proposal is still to go to the select committee, and there is a lot of lobbying underway given the implications that changing existing legal contracts represents, so some changes may still occur. It would be fair to say that there are seemingly a few gaps, leaving many potentially feeling that the proposal is not of real assistance for landlords or tenants. With strict lockdowns (fingers crossed) already behind us, many will have negotiated a way forward a long time ago, so this will be of less relevance. No guidance on what ‘fair proportion’ represents doesn’t really help, especially those in a dispute already. Perhaps the best way forward from this is to focus on how New Zealand emerges safely and effectively from current Covid-19 restrictions, so that the clause doesn’t need to be enacted.

Construction costs up

Auckland’s co-working sector gets a boost

While development activity is rising, so too are the costs to build. Nationally, construction costs for non-residential buildings are on the rise with the increasing number of non-residential building consents and healthier pipelines in the commercial building sector.

Just over two-years since WeWork’s first attempt at an IPO, it looks likely to go public later this month through a merger with a special-purpose acquisition company (SPAC) named BowX Acquisition Corp. This will likely see the shared-workspace company list its shares on the NYSE under the ticker name - WE.

The latest Stats NZ construction cost index indicates 4.6% annual growth between the June 2021 and 2020 quarters, which is well above the 30-year average of 2.4%. Civil construction and land value improvements have continued to track higher as well.

This highlights that despite going through a number of challenges over recent times, the flex and co-working sector continues to evolve with demand from a variety of operators and companies in the future.

Demand for new developments, limited labour pools and supply chain disruption are key factors behind the increasing costs of construction costs lately. These are key factors that look likely to continue influencing the sector over the short-term.

Rising construction activity boosts office space quality The demand for high-quality office space and growing expectations of people returning to offices as strict lockdown mandates dissipate, have resulted in a buoyant outlook in development activity for the Wellington and Auckland office markets.

There is currently 129,000 sqm of office space under construction and consented in Colliers’ five-year forecast development pipeline in the Auckland CBD, 107,000 sqm for metropolitan Auckland and 140,000 sqm in the Wellington CBD. The rise in new development reflects the market’s focus on providing higher quality stock as businesses look to provide a customer and staff centric approach to office space in a time when flexible working and attracting and retaining staff become a priority.

While the new developments will add to prime stock inventories, it is expected that overall sock inventories will not change significantly over the medium-term. By way of example, in Auckland, total stock increased by just 22,957 sqm between December 2016 and December 2020 due to the removal of older lower grade stock. In Wellington, damage from the impact of the 2016 Kaikoura earthquake and ongoing seismic strengthening requirements have resulted in the inventory declining by 41,555 sqm over the same period.

In Auckland, our latest research shows that the sector has expanded its total footprint to just over 64,350 sqm.

Within the CBD, major operators occupy just under 31,000 sqm representing approximately 2% of total floor space. The sector’s share of prime grade office space is more significant at just over 4.5%. The latter figure reflects the fact that operators are moving to meet tenant demand by securing space within prime grade buildings, well illustrated by IWG’s (Regus, Spaces) leasing of space within Commercial Bay and 155 Fanshawe St. Other major operators across the market include Generator, Thinkspace and QB studios who account for approximately 38% of the space occupied by the major operators.

Space under development will add a further 11,000 sqm to Auckland’s co-working inventory over the year ahead. Given that demand for flexible workspace is being strongly underpinned through the adoption, by a growing number of corporate occupiers, of hybrid work models, expansion of the sector is likely to remain a feature of the city’s office market.

View the full New Zealand Research Report for October 2021 on colliers.co.nz/research.

Colliers NZ’s team of market-leading researchers regularly deliver comprehensive reports, forecasts and advice to empower property occupiers, owners and investors to maximise the potential of property and accelerate their success.

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Featured News & Research Talking Points: Real Estate Update | 20 September 2021 Real estate insights and recommendations for occupiers and investors in Asia Pacific based on the previous fortnight’s market events.

Australia – Retail The Future of Sydney Retail Demand Market fundamentals have shifted over the past 18 months, however, the demand side drivers of the core commercial sectors remain favourable. In this Future Demand Series, we explore the key themes that will underpin future growth in each sector beyond 2021.

The second part of the series looks at the retail sector.

Constantly changing consumer shopping preferences have continued to push the envelope of traditional retail. The pandemic has encouraged retailers to improve their technological offerings, in store safety and supply chains to establish the most efficient and enjoyable shopping experiences.

Although e-commerce has been increasingly popular, lockdown recovery periods around Australia have demonstrated stabilising online activity levels and a consumer eagerness to return to stores, cafes, and restaurants to fulfil their retail and social needs.

View the full report on colliers.com.au/research.

East China - Business Parks Embracing the Wisdom, Creating the Campus Mobile internet and other cutting edge technologies are forcing businesses to reexamine traditional business logic, which is breeding new opportunities to upgrade business parks. Traditional business parks offer a unique combination of clear physical boundaries and clear ownership with which to roll out smart city strategies. But these modern, smart campuses should not only promote improved operations and governance, but also promote the development of smart cities through the sharing of data and information.

Smart campus development is still at the initial stage, with standards still being promulgated. Pilot projects are being launched, but there are still many concerns to be addressed. We hereby suggest the following recommendations: • Smart campus development platforms, often conglomerates with real estate development expertise, should establish at the outset, working groups to coordinate the stakeholders including planning, design, technical consulting, real estate consulting, and smart system & equipment suppliers. This should improve efficiency and prevent communications difficulties and later operational obstacles.

• Smart campuses benefit from top down design, where the whole process of project planning, construction and operations management is unified. This should avoid problems such as fragmentation, information silos and duplication of smart applications which would hinder progress towards the ultimate goal.

View the full report on colliers.com/en-cn/research.

South Korea – Industrial & logistics Logistics investment trends and strategic occupier movements Since the COVID-19 outbreak in 2020, Korea’s e-commerce market has expanded, driving growing interest in logistics investment. Major tenants of large logistics centres , e-commerce operators, couriers, and distributors are all focusing on setting strategies to build optimized logistics centre infrastructure for fulfillment and last mile delivery. Investment in cold storage facilities for fresh food delivery is rising. Also, cold storage tenants are demanding more efficient operation strategies, aided by new technology.

• As development permits become more difficult to obtain, and as competition for developable sites intensifies, we expect further rises in land prices.

• We recommend investors focus on developing logistics centres that meet tenant specifications, to ensure quick lease up periods.

• We recommend investors actively use value added strategies to procure older, licensed logistics centres for redevelopment.

• We expect competition among investors to lead to continued growth in logistics transactions, and for cap rates to remain at or below 4%.

View the full report on colliers.com/en-kr/research.

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Auckland’s commercial property market unperturbed by lockdown The latest Covid-19 restrictions have posed many challenges, but Colliers believes the commercial and industrial property market remains very strong as it approaches the final quarter of the year.

While there was a large amount of uncertainty during the Alert Level 4 restrictions in 2020, this time around, investors and developers have been unperturbed.

Gareth Fraser, Director of Investment Sales at Colliers, says the sentiment in the sector is positive despite Auckland’s extended lockdown.

“Since the Alert Level 4 restrictions were enforced in mid-August, we have transacted nearly 40 property sales across Auckland with a combined value of more than $250 million,” Fraser says.

“Some of these transactions were conducted off-market, while others were able to take place because the campaign was launched far enough in advance of the lockdown to enable buyers to inspect the properties before the restrictions were in place.

“In 2021 people have greater access to technology with more tools to be able to work remotely, which contributes to improved productivity across the industry.

“While we experienced a degree of scepticism about the immediate future of commercial property during last year’s national lockdown, the market rebounded so strongly that investors are more relaxed and optimistic in this lockdown, meaning the market has remained strong.”

“This was exemplified by the recent sale of a property in Panmure that is zoned Residential – Terrace Housing and Apartment Buildings Zone under the Auckland Unitary Plan, which is a high-intensity zone enabling a greater intensity of development than previously provided for.

“The property was due to be auctioned but a number of pre-auction offers were received, and the property sold nine days before auction day at $2,700 per square metre to a developer.”

Given the recent Alert Level 4 restrictions were only in place for a short period of time outside of Auckland compared to last year’s lengthy national lockdown it will also help the market remain in a good position.

As we move towards the final quarter of the year, Fraser says there is no sign of the market slowing down.

“October to December is usually the busiest time in the market as everyone focuses on the lead up to Christmas but that will be pushed into overdrive this year due to the backlog caused by Covid-19,” Fraser says.

“The eventual lowering of Alert Levels will only inject more confidence back into a dynamic market and we look forward to a busy run until the end of the year. We have many campaigns ready to launch when Auckland moves to Alert Level 3 where inspections are possible.”

Colliers’ recent research suggests that given increases in interest rates are likely to be incrementally adjusted over the short term and that the moves are from record low rates, the impact upon market activity should be limited in the short-term providing a clear signal for an active market ahead.

Some of the notable recent transactions came from a variety of different commercial offerings, including eight Gull service stations spread across the North Island that sold for a combined sale price of just under $32 million, representing a blended yield of 4.4 per cent.

There was also the market-leading $30.05 million sale of the Synlait Milk facility in Richard Pearce Drive in Māngere that was brokered by the team at Colliers Highbrook.

Fraser says the demand for land that is suitable for terrace housing or townhouses is insatiable among developers and investors.

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Featured Brokers About Greg works with tenants, investors, owner occupiers and developers in Auckland Industrial precincts specialising in the low to upper mid end sales and leasing market of East Tāmaki assisting them with their property strategies to maximise their investments.

Greg Watson

During Greg’s time as an East Tāmaki specialist, Greg’s business & marketing/ advertising background has proven to provide proficiency in establishing and executing creative & effective sales & leasing campaigns for his clients.

Broker | Industrial Auckland South Mobile: 021 083 13534 greg.watson@colliers.com

Greg graduated from AUT in 2016 with a Bachelor of Business degree double majoring in marketing & advertising. Following Greg’s First year of brokerage, the Colliers Rookie of the Year award was presented as a result of most revenue generated within first year of brokerage.

Achievements $60m+ in deals overall

East Tāmaki Industrial Specialist

Listings featured in this Portfolio

Rookie of the Year 2018

- 6-8 Fort Richard Road & 581 Great South Road, Otahuhu - 7B Ra Ora Drive, East Tāmaki

About Matt joined Colliers in 2006 & for the past 6 years has been a Director of the Industrial sales & leasing team, with a focus on mid to upper end industrial sales and leasing transactions. He is considered a trusted source & wealth of knowledge to both vendors & purchasers, with over 15 years in the industry and hundreds of transactions completed.

Matt Prentice Director | Investment Sales North Shore Mobile: 021 464 904 matt.prentice@colliers.com

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Over the years Matt has won numerous National awards including MVP for Brokerage, and the top Auction agent on several occasions, & is a consistent top 10 performer in NZ. Matt has been the lead broker on the majority of large North Shore industrial transactions over the past 5 years, & has sold over $2 billion dollars in sales. 2020 was a record year, Matt finished as the 4th highest performing broker in NZ.

Achievements

Listings featured in this Portfolio

Over $1.5b in deals overall

- Units A, B, C & E, 7-19 Croftfield Lane, Wairau Valley - 31 Shakespeare Road, Milford - 45 Greenhithe Road, Greenhithe - 50 Northcote Road, Northcote - 961 Beach Road, Torbay

Colliers top 5 broker 2020

Colliers top auction broker 2020

About Greg specialises in the mid to upper end of the Industrial sale and leasing markets. He joined Colliers International in 2004, coming from a policing background. He quickly established strong relationships within the industrial market and has worked exclusively for the likes of Fisher & Paykel, The Warehouse, Freedom Furniture, Fletchers, NZ Police, NZ Guardian Trust, Goodyear Dunlop NZ Ltd and Mercedes-Benz to name a few.

Greg Goldfinch National Director | Industrial Auckland South Mobile: 021 537 682 greg.goldfinch@colliers.com

Greg has been the lead broker on nearly all of the largest transactions in the industrial property market over the last ten years. Greg has completed three of the largest industrial sales ever in the New Zealand market. He is a regular top 10 broker for Colliers across NZ having transacted in excess of $6 billion worth of industrial real estate in his time with Colliers.

Achievements $6 billion in deals overall

Listings featured in this Portfolio

REINZ Commercial & Industrial Salesperson of the Year 2021

Colliers top 5 broker 2020

- 6-8 Fort Richard Road & 581 Great South Road, Otahuhu - 20-24 Lorien Place, East Tāmaki

About Shoneet has been involved in selling investment property for over 12 years and since 2015 he has been a Director in the Investment & Development Sales teams across the wider Auckland region.

Shoneet Chand Director | Investment Sales North Shore Mobile: 021 400 765 shoneet.chand@colliers.com

Shoneet was the top broker at Colliers in the 2018 financial year and a finalist for the Commercial & Industrial Salesperson of the Year award, which is judged nationwide across all agencies. In both 2019 & 2020, he was again ranked in the top 5 brokers nationwide for Colliers and was involved in over $300 million & $325 million of sales in each calendar year.

Over the past five years, he has transacted over $2 Billion dollars in sales.

He has been involved in a number of large land sales and portfolio sales, including divestments for well-known brands like Z Energy, The Warehouse & Bunnings.

Achievements

Listings featured in this Portfolio

Over $1.5b in deals overall

- Units A, B, C & E, 7-19 Croftfield Lane, Wairau Valley - 31 Shakespeare Road, Milford - 45 Greenhithe Road, Greenhithe - 50 Northcote Road, Northcote - 961 Beach Road, Torbay

$325 million of sales in 2020

Colliers top 5 broker 2020

Colliers top broker 2018

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Featured Brokers About Paul joined Colliers in 2005 working in Auckland’s industrial team specialising in the mid to upper end sales and leasing market. Paul has also spent a couple of years working for Colliers in the Central and Eastern Europe market where he was Director of Poland’s Krakow office. In 2010 Paul returned to Auckland to again work in Auckland’s industrial market.

Paul Higgins Director | Industrial Auckland South Mobile: 021 549 226 paul.higgins@colliers.com

Since joining Colliers Paul has worked on a number of large sales and leasing transactions working with companies such as Geon Group, Coke, Delphi, Motorola, Goodyear, Ceva, ITW, Goodman, ING plus many others.

Achievements 3.5B sales overall

150m of sales in 2020

Listings featured in this Portfolio

Colliers East Tamaki Expert

- 6-8 Fort Richard Road & 581 Great South Road, Otahuhu - 29 Lorien Place, East Tāmaki - 62 Allens Road, East Tāmaki

About Matt has been involved in selling Investment property with Colliers for over 5 years and since 2017 he has been a Director of South Auckland Investment Sales focussing on the South Auckland market.

Matthew Barnes

Over the past 5 years he has been involved in a number of successful sales campaigns building a strong track record of key significant sales. He has had considerable experience in dealing with a wide range of clients transacting for private clients as well as completing a number of recent deals with investors from throughout New Zealand and off-shore investors from Asia.

Director | Investment Sales Auckland South Mobile: 021 828 563 He has been involved in a number of large recent sales, including the Gull matthew.barnes@colliers.com portfolio divestment.

Achievements

Listings featured in this Portfolio - Fernleigh Industrial Estate, Waiuku

Over $100m in deals YTD 2021

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Medium Commercial & Industrial Office of the Year 2021 – Colliers Auckland South

Gull Portfolio sale $30m + (8 sites)

About Tony specialises in the commercial, industrial and land markets servicing clients sales and leasing requirements. Tony has a particular focus in the Franklin (Pukekohe) region where he has formed strong relationships with property owners, buyers and tenants.

Tony has experience in the divestment of both tenanted and vacant buildings / properties, and has handled multiple occupier requirements.

Tony Marsh Broker | Investment Sales Auckland South Mobile: 021 141 2072 tony.marsh@colliers.com

Achievements

Listings featured in this Portfolio - Fernleigh Industrial Estate, Waiuku

Medium Commercial & Industrial Office of the Year 2021 – Colliers Auckland South

Pukekohe and Surrounding Franklin Region Specialist

About Gareth leads Colliers’ Investment Sales team. The team operates across the entire Auckland market from four strategic locations; CBD (including city fringe), South Auckland (based in Highbrook), West Auckland (based in NorthWest Shopping Centre) and North Shore (based in Takapuna).

Gareth Fraser Auckland Director | Investment Sales Auckland CBD Mobile: 021 242 6779 gareth.fraser@colliers.com

This is a large team of brokers and support staff focussed on providing solutions to owners, investors, developers, owner-occupiers and tenants.

It features a specialised site sales team focussed on residential land and development opportunites. Investment Sales also includes the syndication division, offerring proportionate ownership opportunities to investors on behalf of clients.

Gareth is also on the Executive Team for Colliers in New Zealand.

Achievements $150m in sales YTD in 2021

$225m in sales in 2020

Listings featured in this Portfolio

Over $1b in sales since 2015

- 6-8 Fort Richard Road & 581 Great South Road, Otahuhu - 248, 250 & 250A Mount Wellington Highway, Mount Wellington

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Licensed REAA 2008

HSBC Tower, Level 23 188 Quay Street Auckland 1010 portfolio.colliers.co.nz *This document has been prepared by Colliers New Zealand for advertising and general information only. Colliers New Zealand does not guarantee, warrant or represent that the information contained in this document is correct.

October 2021

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