100 Carbine Road is a large warehouse complex with road frontages on Bowden Road and right of way access to Carbine Road and Gabador Place. The majority of the property is leased to Bunnings Limited (either directly or by way of sub-lease) until 15 October 2017

Carbine Road links Waipuna Road in the north to Panama Road in the south intersecting the South Eastern arterial. The Mount Wellington area is considered a premier industrial location with its close proximity to the South Eastern Arterial and Southern Motorway, providing access to the CBD, Ports of Auckland and the Auckland International Airport – all within a 15 minute drive. The area has attracted a significant array of tenants including household names such as Coca-Cola, Tip Top, Progressive Enterprises and Repco to name a few.

The buildings are of varying age, with the original office and warehouse built in the early 1970s and then a more recent high-roofed warehouse building that was built in 2005.

The buildings are fully sprinklered. The building has received an IEP of at least 60% of NBS for the original structures and 100% NBS for the newer structures (as at August 2014). The site is located in an area that has been identified as subject to an overland flow path and watercourse by Council. There is no current requirement to increase the original structures to 100% of NBS and the Manager believes that the costs of doing so would outweigh the benefits.

Bunnings are currently investigating the market for new build premises but have requested a 3 year extension with a 12 month termination right and based on the current contract rent. This request is currently being considered by the Manager. The current lease is at less than market rates so there is an immediate opportunity to provide Bunnings with an extension but at the higher market rental rates.

In addition, there is a possibility that Bunnings could be secured on the site under a new long-term lease arrangement with appropriate redevelopment of the property, which would provide comparable but more cost effective premises as compared to the new build premises they are currently investigating.

Longer-term, if the Fund is unable to secure Bunnings under a new long-term lease arrangement the options for improving 100 Carbine Road include:

• re-leasing the property to new long-term tenant(s) given the buildings could be split with the creation of a breezeway to facilitate access; or
• potentially breaking the buildings up into separate titles (each with their own road access) and then selling the individual titles to owner occupiers, or securing tenants and disposing of the titles.