A modern, well-presented office complex housing one of New Zealand’s largest government departments is up for sale in the heart of South Auckland’s industrial belt.

The substantial purpose-built property on Bairds Road, Otara, has since 2012 been occupied by the department charged with managing New Zealand’s corrections. Its government-backed tenant covenant has real estate specialists tipping it as the “jewel in the Crown” for commercial property investors seeking a trophy asset.

The Bairds Road property generates a gross rental return of $585,238 plus GST per annum, with fixed three-yearly increases. The current lease runs through to 2030 with a further three-year right of renewal.

Greg Hall of Bayleys South Auckland said the substantial freehold landholding, long lease and Crown-backed rental income with built-in growth offered enormous appeal for commercial property investors.

“With the government in occupation, this is the among best tenant covenants an investor could ask for. The entrenched tenant, the Department of Corrections, is one of the biggest of all government organisations.

“This makes this property hard to beat as a trophy investment for savvy investors seeking secure passive income from a high-calibre asset – you could call it the jewel in the Crown,” Hall said.

The Department of Corrections had around 10,000 staff in 2024 responsible for managing some 10,000 prison inmates and 30,000 offenders in the community. It operates 18 prisons and services run by Probation. The department had an operating and capital budget of more than $1.9 billion in 2024.

The freehold land and buildings at 25 Bairds Road, Otara, Auckland, are being marketed for sale by Hall and his Bayleys South Auckland colleague Paul Steele.

The property will be sold by deadline private treaty closing on Thursday 25 September, unless it is sold earlier.

The approximately 1,065-square-metre standalone building sits on more than 4,500 square metres of freehold land with onsite parking for 65 vehicles.

The building encompasses mostly open-plan, high-ceiling office space with plenty of breakout and meeting rooms, and a well-appointed reception and waiting room.

“This is a modern facility in immaculate condition. Brightly lit and well-kept, the custom-fitted office space presents excellently with its long-established government tenant,” Hall said.

“The wealth of on-site parking sits within a fully fenced and secure area, while a garden behind the building provides a pleasant breakout space.”

Steele said the strategic location added further to the site’s attraction.

“Bairds Road in Otara sits in the heart of South Auckland’s sought-after industrial belt. This is a proven, central base in one of the city’s most active and well-connected hubs of industry,” said Steele.

The site forms part of the Business – Light Industry zone under the Auckland Unitary Plan.

“Surrounding industrial precincts such as Highbrook, East Tamaki and Manukau are home to numerous national and international businesses, drawn by the area’s transport efficiency and proximity to key freight hubs,” Steele said.

“Nearby arterial routes such as Great South Road and Te Irirangi Drive help to maximise accessibility for staff, customers and suppliers. The State Highway 1 interchange at Highbrook is minutes away and State Highway 20 is within a short drive.

“These links ensure seamless access across the region, including to Auckland Airport, Wiri Inland Port and the city centre,” Steele said.