“This property will be of interest to buyers looking for a tenanted industrial investment with future redevelopment potential in one of Auckland’s most popular and fast growing industrial precincts,” says Bramwell.
The large 1.7 hectare property is occupied by Big Tuff Pallets Limited, generating net rental income of $400,000 a year.
The company holds a six-year lease dating from September 2012 with two rights of renewal of six years each, Steele says.
“With the current lease agreement providing a possible final expiry in September 2030, buyers will view this property as an excellent long-term investment, with a solid income stream and income growth potential through market rent reviews every two years.”
The property’s location adds to its attraction as an investment, Steele adds. “The site is located alongside the South Western Motorway, which gives it excellent visual exposure to thousands of passing vehicles daily. In this respect it can be considered a prime site in the popular industrial suburb of Wiri.”
Bramwell says the property’s strong income stream and pricing will make it attractive to investors who are looking to secure a holding in Wiri for redevelopment or for their own use in the future.
“The high demand for industrial land in South Auckland means values are expected to continue to rise. Because of this, we expect this site to be of interest to buyers who want a prime piece of land with income and future options. The low density nature of the property means that the purchase price will be strongly backed by the underlying land value,” he says.
With only 37 per cent existing site coverage, the property presents many options to add value in the future, Steele says.
“The property is big enough to accommodate a modern, state of the art industrial facility with a large warehouse and yard, which would ideally suit many national businesses looking for an excellent profile and signage exposure to the motorway.”
There is also the opportunity to buy an adjoining tenanted investment property at 11 Diversey Lane, also being offered to the market under a sole agency by CBRE, he adds.
“The two neighbouring properties on the market together offer a strategic opportunity, with over two and a half hectares in combined land area. This will be a very attractive proposition given the limited land available in South Auckland and the lack of quality investment opportunities on the market,” says Steele.
The property includes three existing buildings providing a total floor area of circa 4,700sq m. One of the buildings is a modern, high stud dry store facility, along with two older-style sawtooth roof manufacturing buildings in which the tenant has recently invested in specialised equipment.
The site, which has a 215m frontage to State Highway 20, is located only 650m from the Cavendish Drive motorway on and off-ramps.
Wiri has recently become one of Auckland's fastest-growing commercial zones and is home to several major manufacturing and distribution complexes, says Bramwell.
“Despite its increasing popularity as a business location, Wiri still offers cost benefits over more traditional industrial areas in South Auckland, where land prices are at a premium.”
Wiri is popular among large industrial owner-occupiers and is home to some of New Zealand's best-known companies, Bramwell says. “Croxley, K-Mart, Bridgestone, Frucor, The Warehouse, Progressive Enterprises, Downer EDI, Cavalier Bremworth and Foodstuffs are just a few of the high-profile companies which have chosen to make Wiri their home.”
Steele says the Waterview Connection will make Wiri one of the best locations in Auckland for businesses relying on road transport. “When the Waterview Connection is finished it will complete the city's western ring route, providing superior transport access for businesses in Wiri and seamless connections to the north, west and south.”
As more businesses recognise the benefits of being located in Wiri and move into premises there, the amenities in the area are improving, says Steele. “The retail and food options available to staff working in Wiri are increasing as the local working population grows. For example, there is a new medical centre going into Cavendish Drive.
“9 Diversey Lane is ideally situated to benefit from this growth and development, which is gathering pace as Wiri’s reputation as a well-located home for industrial occupiers.”
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.