Bayleys marketing “the ultimate passive investment”

Bayleys marketing “the ultimate passive investment”

NZMS says: “70% finance is achievable.”

Currently returning $4,413,606 pa, with two long term tenants in place.

Investors are being offered an exceptionally rare opportunity: the chance to purchase a 4 Greenstar rated, state of the art new office development, with two long term A grade tenants in place.

The six-­level GHD Centre in Auckland’s Victoria Quarter was completed by Manson TCLM in October last year, and offers a total net rental area of 8,303m2. The current net rental income is $4,413,606.43 pa with fixed annual rental increases. GHD’s initial lease term is for 12 years, while Lion Breweries have an initial lease term of 10 years.

James Kellow, Head of Lending at New Zealand Mortgages and Securities, says this is exactly the type of property NZMS is keen to arrange funding for.

He has calculated that, due to the 4 Greenstar rating, central location and long lease terms, 70% finance is achievable. “The long leases allow banks to advance a high loan to value ratio, as there is a long time to pay the loan down to more usual lending levels.” He quotes indicative rates from 4.51% floating to 5.59% fixed for five years.

Kellow also observes that the modern design, with large floor plates, is more attractive to both banks and tenants. “This kind of set up is increasingly popular, and provides a more comfortable working environment. I’ve been advised that GHD are very impressed with their new offices -­ the benefits of bringing a multi-­floor, multi-­ location business into one building have been enormous.”

NZMS specialise in arranging corporate finance, lending from their own balance sheet and facilitating arrangements with registered banks. They have recently assisted with the $71 million purchase of the Auckland City Council Building in Takapuna, and secured $155 million of bank finance approvals for a European investor group.

The GHD Centre, 27 Napier Street, Victoria Quarter is for sale through Bayleys by Deadline Private Treaty, closing Wednesday 24th April (if not sold prior).

ENDS

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