Prime Apollo Drive property fit for the gods

12:36 PM Sunday May 25, 2014 Colin Taylor

The architect-designed building has high-quality specs, good roadside position and is one of the few large-scale investment opportunities in the Albany area.

A high-profile architect-designed industrial property with a prominent roadside position on the North Shore's popular Apollo Drive is to be auctioned next month.

"This is one of the few large, high-quality investment properties available in the area," says Andrew Bruce of NAI Harcourts who, with colleague Rob Meister, is jointly marketing 34 Apollo Drive with Omega Commercial's Derek Wallwork.

The 2971sq m building on a 5160sq m freehold site will be auctioned at noon on Thursday, June 5 in the NAI Harcourts Auction Room at 400 Beach Rd, Mairangi Bay.

The property, which generates net annual rent of $409,692 per annum plus GST, comes with 54 parking spaces and is divided into three areas, with three separate tenancies.

RPM International Tool & Die Ltd, New Zealand's largest privately owned and operated tool and die manufacturer, has two of the tenancies and has occupied most of the building since it was built.

Designed by Terry Randall of Design Architectural Ltd, the building was constructed for RPM's own use in 2005.

The current RPM lease started in December 2010 and is for a term of five years and nine months with two rights of renewal of three years each, taking the potential final expiry to the end of August 2022.

Bruce says this tenancy occupies 72 per cent of the total premises and comprises 563sq m of office and amenities space; 324sq m of mezzanine, warehouse, office and low-stud workshop floor area; and 880sq m of main warehouse space; along with 48 car parks. RPM pays net rent of $275,000 a year plus GST.

The second tenancy occupied by RPM is for an additional warehouse area leased on a separate agreement with the expiry timed to coincide with the main lease. The warehouse tenancy for 482sq m includes five extra parking spaces for an annual net rent of $50,000 plus GST.

The third tenancy is held by Visitec (NZ) Limited, however a new lease has been signed with Hydroflow Distributors, which specialise in servicing pump shops and milking machine companies, and takes effect in just over a month on July 1. The tenancy is for four years plus one right of renewal for a further four years, with a final expiry date of June 20, 2022. This tenancy earning annual rent of $84,100 plus GST encompasses 722sq m of floor area and six car parks.

"This truly is one of the few properties on the North Shore of this quality and large size," Bruce says.

The entrance to the RPM-occupied office area features an attractive two-level atrium staircase leading to a first floor reception area, boardroom, directors' and administration offices, kitchenette and bathroom. The ground floor has a large tiled lunch room, locker area, changing rooms and toilets.

The main warehouse occupied by RPM is accessed via two roller doors and features a high-stud area ranging from 7.8m to 9m, and rails for the use of the lessee's five-tonne and 10-tonne gantry cranes.

There are also two five-tonne gantry cranes that are leased to RPM. Within the warehouse is a two-level office block built to accommodate engineering and drafting staff, providing a view over the warehouse and manufacturing facilities.

The centre warehouse tenancy leased to RPM is divided off from the main RPM warehouse by a partial height wall, the separated area providing a rectangular warehouse accessed from the main warehouse.

The rear tenancy to be taken up by Hydroflow Distributors consists of a rectangular warehouse and portacom-style building that is used as a lunchroom and office area for the warehouse staff. Meister says the buildings at 34 Apollo Drive are all of quality construction materials. "The foundations are concrete, the exterior cladding is pre-cast concrete tilt-slab, marble stone, aluminium panelling and the roof is long-run steel."

He says Apollo Drive is regarded as the premium industrial area on the North Shore because of the quality of its buildings and the tenant profiles. "Number 34 is on the fringe of the highly sought-after Interplex @ Albany Business Precinct which, in conjunction with the adjacent Albany Heights subdivision, has experienced rapid growth recently.

"The current zoning is Business 9 but this is proposed to change to Light Industry under the Auckland Council Unitary Plan."

The property is close to two motorway interchanges at Greville Rd, 2km to the northwest, and Constellation Drive, 1.8km to the south. "The Auckland CBD is 15 minutes away in off-peak traffic conditions," Meister says.

Bruce says the Apollo Rd property makes for "a desirable investment" with its massive street exposure, established tenants and quality construction. Investors can also be reassured by its A-grade initial evaluation procedure (IEP) seismic rating of 92 per cent.