A big open shed on Auckland's North Shore is being transformed into the functional headquarters of an international marine business thanks to a joint effort by KCL Property and Colliers International.
Maxwell Marine, which manufactures winches and other accessories for pleasure boats, superyachts and commercial vessels, is moving its Auckland operation this year into 7 John Glenn Avenue, part of the North Harbour Industrial Estate.
The building was previously used for the distribution and storage of plasterboard and was designed to keep out natural light in order to prevent damage to the product.
Once Colliers International's North Shore based industrial team identified it as having "good bones" and being suitable makeover material, they approached KCL with a tenant. Colliers International enjoys a great working relationship with KCL, a property investment company with a strong national and international focus. It manages in excess of $500 million worth of retail, industrial and commercial property throughout New Zealand and in Queensland.
Auckland Director Matthew Gibson said the building appealed because it was not "over-officed". "On the North Shore there tends to be a trend where industrial buildings have large office components, which can often make them difficult to re-lease. This building also had an excellent stud height, which gave flexibility in terms of use".
The renovation was not as substantial as some that KCL has carried out - the industrial area was partitioned into two areas and then upgraded. Maxwell Marine has taken a six-year lease on 75% of the premises, with Colliers International now seeking a tenant for the remaining 1000m².
Industrial Broker Mike Ryan: "A great location was also a key factor in this deal. It's off a main arterial road, William Pickering Drive in the North Harbour industrial area."
Gibson says KCL will consider major refits for a good calibre tenant, if the deal stacks up and the number work. "In this climate we are also seeking longer leases and looking very closely at the tenant's ownership structure and seeking as much financial information as possible."
Both Ryan and Gibson agree that there is a shortage of industrial land on the North Shore which has resulted in land prices climbing to well in excess of $400m² and some past sales over $600m². Gibson: "There remains a low vacancy rate on the North Shore for industrial properties compared with other regions and as such, KCL continues to target this area for investment property."
While KCL ensures the consent process is researched and coordinated effectively, it is an area of continuing frustration for Gibson. "Dealing with local authorities for consents is a nightmare. Staff are nervous about issuing building consents and use every excuse possible not to do so.
"I have written to Rodney Hide (Minister of Local Government) this week stressing the need to streamline the process, which the Government has already announced it intends to do".
He says the alliance with Colliers International is a relationship that functions well and is strengthened by joint projects that have been successfully completed throughout New Zealand. "Brokers are the lifeblood of the industry and those from Colliers International have extensive market knowledge."
The two companies have worked on the leasing of a number of North Shore properties.
Ryan: "Our focus is to be in touch with all the different representatives on the Shore and then find buildings that KCL can add value to by reconfiguring. Our specialist team is always on the lookout for large buildings so we can go through this process for other landowner sand property owners as well."
Industrial team manager Jimmy O'Brien says: "It's the second large lease Colliers has put together recently in John Glenn Avenue. At number 6 John Glenn we relocated Mowac Corporation, who were changing their business model, and moved in Easi-Yo Products Ltd who are in expansion mode." The latter began over 16 years ago as a one-man operation in an Auckland basement and has since grown substantially exporting to several countries. "We have had a fantastic run on industrial leases since the last quarter of 2008 up until now," says O'Brien.
Matt Prentice, a third member of the Colliers Industrial team, confirms "enquiries are still good and we are expecting a great year of leasing ahead. Tenants have not had as much choice on the North Shore for a very long time. We currently have in excess of 120,000m² of industrial space to lease on the Shore and there are deals to be done!"
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