The Waitākere District Court facility in West Auckland is being presented to the market for sale, offering buyers the opportunity to purchase an asset with a government tenant that has recently committed to a new long-term lease.
Located at 9-11 Ratanui Street in Henderson, the property has 3,356sq m of total floor area spread across two buildings on a 1,981sq m freehold site.
The Ministry of Justice began an eight-year lease at the property in April, which runs until 2033. The agreement includes 2 per cent fixed annual increases.
The total net annual rental income from the property is $849,009 plus GST and operating expenses.
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The highly visible building sits near the centre of Henderson, which has a range of key amenities, including retail stores, supermarkets, and services.
There is public transport nearby such as the Henderson train station and multiple bus routes.
The property is zoned Business – Metropolitan Centre Zone under the Auckland Unitary Plan. The zone provides for a wide range of activities, including commercial, leisure, high-density residential, tourist, cultural, community, and civic services.
Colliers Brokers Caroline Cornish, Blair Peterken, and Nelson Raines have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 12 November, unless sold prior.
The property comprises two buildings with the original building constructed in 1977 and the additional structure added in 1997.
There is office accommodation, six courtrooms, and 13 holding cells at the facility. There are also 26 car parks, 10 of which are covered.
Cornish, Director at Colliers West Auckland, says this is an outstanding passive investment opportunity that is underpinned by a strong tenant covenant.
“Government tenants are sought-after by investors and given the recent commitment to a long-term lease, the new owner will benefit from a steady rental stream that will grow through annual rental increases,” Cornish says.
“That type of built-in rental growth is coveted by buyers and adds to this offering.”
The property is well connected to major arterial routes, including State Highway 16, ensuring efficient access to surrounding areas. There are also local schools, parks, and recreational facilities within a short distance.
Peterken, Director of Capital Markets at Colliers, says the property benefits from its prime road-front position and is surrounded by other civic facilities such as further government agencies and education providers.
“The WestCity Waitākere shopping centre is only a five-minute walk from the subject property and offers more than 100 stores,” Peterken says.
“This property serves as a key piece of civic infrastructure in West Auckland and will allow the new owner to acquire a strategic asset with a steady rental stream.”
Raines, General Manager of Colliers West Auckland, says the wider Henderson-Massey Local Board area is one that continues to expand.
“Data from the most recent Census showed a jump in the local population of 5.4 per cent from the 2018 edition,” Raines says.
“The West Auckland region continues to benefit from commercial growth and investment with major developments at Westgate attracting people to the area for shopping.
“This investment opportunity gives prospective purchasers the chance to acquire a property with a stable tenant that is committed to the location with a long-term lease.”
- Supplied by Colliers
