Published 29 October 2007Fashion underwear company Bendon Ltd’s new head office in the Airport Oaks subdivision in Auckland goes on the market as a sale-&-leaseback this week with expectations of a $20 million-plus price tag.
“This is the kind of investment the pension funds will have a crack at,” said Derek Harries, senior director at CB Richard Ellis’ industrial and logistics services division.
Bendon moved its office from comparatively primitive quarters in the East Tamaki industrial done when the new headquarters building was completed in 2004. The distribution centre followed early last year.
In keeping with its high-profile fashion image, Bendon snared the Montgomerie Rd-George Bolt Memorial Drive corner site, on the Auckland City approach to Auckland International Airport and the gateway to the extensive Airpark & Airport Oaks industrial estates.
If the property achieves the anticipated price bracket, it will stamp an international seal of approval on the industrial estates around the airport, with a yield in the low 7% range, firmer than the office market in the central business district was managing 2 years ago.
The Bendon site occupies 1.64ha and has 3 road frontages, backing on to Airpark Drive for warehouse access. The head office area of 2167m² has a rental rate of $250/m², and a small part of it a rate of $255. The high-stud 3818m² section of the warehouse has a rental rate of $110/m².
Including a fitout rental for the 8½ years of the initial Bendon term, total passing rent is just under $1.65 million. Bendon has 2 6-year rights of renewal.
The property is managed by Jeremy Keating, of Site Retail Ltd, who has worked with Bendon for many years and was instrumental in arranging the shift from East Tamaki into the new design-build premises.
The combined Airpark & Airport Oaks subdivisions are the fastest-growing industrial areas in Auckland, fed by growth in customs clearance, logistics & distribution centres. Trans Tasman Properties Ltd began the Airpark subdivision with 29 industrial sites in 2002, but sold out in 2004 after adding a 52ha second stage to the original 35ha.
The whole Airport Oaks now has 517,000m² of industrial property in it, all outside the boundary of the airport, where the airport company has been carrying out its own developments.
Attribution: CBRE release, story written by Bob Dey for this website.