· "landmark" buildings in prime CBD location
· Modern apartments - some with harbour views
· Long term management agreement
Director, | Coromandel, Auckland CBD
For the very same reasons tenants want to reside at The Docks - you should look to buy the management rights business!!!
Management rights in Auckland have proved very popular over the years and whenever we get listings we have multiple interested parties. This should give you comfort in the knowledge that when you come to sell, sometime in the future, there should be a high level of demand and the offering will be very liquid and transact in a short space of time.
There has been good income coming from the ownership of these management rights and all things being equal this should be sustained into the future.
The remaining term for the management agreement is substantial with final expiry not until late 2037.
There is a mix of configurations ranging from studios, 1 bedroom and 2 bedroom apartments. There is ample carparking in the basement below the buildings.
There is the real benefit of owning a management rights along Auckland’s waterfront because of the inherent locational benefits, but often you would also have to buy real estate. In this instance, you don’t have to buy the real estate and this could be considered a real plus given the leasehold nature of the land and much of the surrounding land/waterfront.
Not only do you not have to invest in real estate but the Body Corporate pay the rent for the managers apartment and all the outgoings.
So the money you earn from the management rights gives you a much better return on investment as opposed to when you buy associated property you are simply hoping for appreciation.
With only 82 apartments in the letting pool, out of the 220 total in the complex, there is always the potential to grow the size of the business.
Contact the Sole Agent today.
Potential buyers should review an Australian summary of management rights by clicking on the reference below which is a historic and dated document but sets out the salient issues around management right ownership and operation. Much of the content is relevant to the New Zealand situation:
There have been recent legal decisions with regards to the status of some of the provisions commonly found in management rights contracts in New Zealand. We recommend that all potential buyers of Management Rights seek legal advice.
Disclaimer: We do not accept responsibility for mis-statement or error contained on this site. Interested persons should rely on their own enquiry. All prices are plus GST if any unless otherwise stated. If the transaction is recognised as a going concern then the sale should be zero rated.
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