Two of Auckland’s best-in-class city-fringe office assets with bankable seismic credentials, strong corporate occupier covenants, and enviable carparking ratios, are for sale individually or together.

Owned by NZX-listed Argosy Property which has a diversified quality commercial portfolio underpinned by a dedicated sustainability strategy, the two freehold buildings boast high NABERSNZ energy performance ratings, are fully refurbished and come to the market as the entity reweights its property portfolio.

Featured in Bayleys’ latest Total Property portfolio, the A-grade buildings at 99-107 Khyber Pass Road and 8 Nugent Street in Grafton have a combined net passing income of circa-$4,590,697 per annum plus GST.

With a high-profile corner site position on Khyber Pass Road and Nugent Street, the two-level Khyber Pass building has ample basement rooftop carparking, ground floor office/showroom and level one office space. It has net lettable area of around 2,509sqm plus 92 car parks and is 100 percent occupied.

Constructed in 1987 on a 1,859sqm freehold site which is arguably underdeveloped, the building underwent extensive refurbishment programmes in 2002 and 2019, and has a best-practice 5 Star NABERSNZ rating. The most recent improvements comprised a new façade, a new chilled-water system with fan-coil units, a reimagined foyer, and upgrades to the rooftop car park, including a new plantroom.

The building has regular floor plates with a central core of lift and stair access, which facilitates easy splitting and reconfiguring of floors if required.

Approximate net annual income for this building is $1,128,257 plus GST from a diversified tenant mix including global appliance brand De’Longhi, digital health company Rhapsody, communications entity Chorus and education training provider academyEX.

8 Nugent Street comprises a freehold five-level office/showroom building on 2,115sqm with net lettable area of 8,125sqm, and a seven-level strata carparking building with 245 car parks on individual freehold titles. It is part of a comprehensive commercial and residential development which was completed in 2009, comprising four main buildings around a central plaza.

The ground floor showroom space is occupied by a café and a gymnasium, with four levels of office above. There are three lifts, bathroom amenities on each floor, and kitchenette facilities for each tenancy. The Nugent Street building is at 100 percent NBS and is 96 percent occupied with just one 314sqm tenancy available after an established tenant recently consolidated space within the building. Flagship occupiers include development and infrastructure firm Wood and Partners, Mobil Oil, New Zealand Cricket, investment company Oregon Group, and property developers Neil Group, with the building returning net annual income of $3,462,440 plus GST.

To be sold individually or together, these properties are being marketed by Alan Haydock, Tommy Zhang and Damien Bullick from Bayleys Auckland Metro team, with tenders closing Thursday 29th May, unless sold prior.

Haydock says the two buildings represent the highest quality office assets on the city fringe, and this is reflected in the tenant covenant.

“As the flight to quality for corporate occupiers continues there’s sustained demand for ESG-compliant office spaces. A-grade buildings attract A-grade tenants and under astute management by Argosy, these buildings have enjoyed continuous leasing activity regardless of market cycles which is testament to the quality of the space, the convenient location, and the unrivalled carparking ratios.

“These properties are within easy walking distance to the soon-to-be-completed Maungawhau (Mt Eden) Station which includes new and upgraded platforms for the City Rail Link (CRL) line, and Grafton Station on the existing Western Line.

“The area around Maungawhau Station is expected to evolve into a comprehensive urban precinct with high amenity. Along with the subject properties’ already strategic location close to the University of Auckland Newmarket Campus, the Newmarket commercial/retail precinct, the hospital, and the CBD, these improvements further underscore the long-term value proposition of these offerings.”

Bayleys’ global real estate partner Knight Frank reports that the office sector led investment volumes across Asia-Pacific in 2024, with A-grade assets having high occupancy rates driven by a slowdown in new development of premium space, and demand for quality.

“Auckland has a shortage of prime space and corporate occupiers have rigorous standards to meet stakeholder expectations – and for the attraction/retention of talent,” explains Haydock.

“City-fringe A-grade assets are exceedingly thin on the ground, so we think the Khyber Pass Road and Nugent Street offering is likely to resonate with high-net-worth private buyers, investment funds, and offshore capital.”