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Healthcare company’s head office for sale has the right chemistry for investors

The land and buildings housing the New Zealand head office operations of one of the world’s largest healthcare companies has been placed on the market for sale.

The prominent office and warehousing facility at 507 Mt Wellington Highway in the light industrial precinct of Mt Wellington is tenanted by healthcare giant Johnson & Johnson (NZ) Limited, a New York Stock Exchange publicly-listed subsidiary.

Based out of North America but with branches around the world, including New Zealand, Johnson & Johnson supplies and distributes an extensive range of skincare products, medicines, personal hygiene items, surgical supplies and artificial joints.

The Johnson & Johnson lease at 507 Mt Wellington Highway has a potential final expiry in 2030 and currently generates a net rental of $812,209 plus GST per annum. The lease provides for an annual 2.5 percent rental increase, with Johnson & Johnson paying 100 percent of building’s operational expenses.

The freehold 4,513 square metres of land and 2,722 square metre building at 507 Mt Wellington Highway is now being marketed for sale by tender through Bayleys Auckland salespeople Sunil Bhana and James Hill with tenders closing on April 23.

“The building houses Johnson & Johnson’s administrative and surgical warehousing operations, with a mix of open plan and partitioned offices, meeting and training rooms over two floors of modern office space, ” Mr Bhana said.

Mr Hill said Johnson & Johnson had invested substantially in configuring the premises to the company’s specific operational requirements. Originally built in 1994, the premises underwent a complete modernisation and reconfiguration programme in 2011, with additional tenant works completed by Johnson & Johnson in 2011, 2014 and 2019.

These works including earthquake strengthening, new solar glazing glass, new ceiling grid and acoustic panels, lighting, air conditioning and sprinkler system upgrade, with most services and amenities replaced.

“The warehouse has a 6.9-metre stud at the sides, rising to 9.1-metres at the apex of the curved profile roof, however Johnson & Johnson added a concrete mezzanine floor occupying nearly the entire length of the warehouse – allowing for highly specified air conditioned warehouse below including humidity control,” Mr Hill said.

“The tenant’s significant capital contribution to the build reflects a strong partnership with, and commitment to, both the landlord and the location.

“The location of the warehouse– just some 500 metres from State Highway One – enables fast and efficient logistics processing for the time sensitive nature of the products provided to the medical industry.”

Mr Bhana added: “Significant landlord works - together with considerable investment from the tenant - has created a facility difficult to replicate.”

The building sits in a high profile, central Mt Wellington location and features 74 car parking spaces. The location is zoned Business – Light Industry under the Auckland Council plan.

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