Mercedes-Benz HQ sells for $7 million, 6.66% yield

Mercedes-Benz HQ sells for $7 million, 6.66% yield

AUCKLAND, 5 May 2011—The headquarters of Mercedes-Benz in New Zealand, in a newly refurbished building on a new long-term lease at 9 Pacific Rise, Mt Wellington, Auckland, was sold at auction today for $7 million at Colliers International’s offices at 151 Queen Street, Auckland.

The property was sold to a private investor on a yield of 6.66%.

The property was marketed by Colliers International’s Greg Goldfinch and Andrew Hooper on behalf of Direct Property Fund Limited.

“This was one of the most bullet-proof offerings we have ever been involved with,” said Greg Goldfinch. “The auction room was packed, with at least 80 people attending and 12 bids along the way. This is a magnificent addition to any portfolio.”

The 2,926m² complex, into which Mercedes-Benz moved in March, consists of a modern purpose-built building with a 463m² foyer showroom, two levels of offices and a 1,039m² workshop and 7 metre stud warehouse space.

The building is home to Mercedes-Benz’ Head Office operations, including sales, marketing, finance and training facilities for their nationwide dealership network. Prior to moving in, a comprehensive $1.5 million refurbishment of the building was undertaken by Direct Property Fund over a four month period ahead of occupation.

Mercedes has taken a new ten year lease on the property with two five year rights of renewal, with final expiry on 31 December 2030. Returning $466,384 net per annum, the rent will be subject to increases of 7% every other year, reviewed on the second anniversary of the commencement date.

Andrew Hooper says: “The sale was highly successful and is part of Direct Property Fund’s strategy to pursue attractive capital opportunities that will enable them to grow their portfolio and provide the full benefits of diversification to their shareholders.”

ENDS

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