Originally built for New Zealand's Navy, but having been in commercial hands for at least a decade now, a large, securely tenanted, two-unit office warehouse complex has come on to the market at 4C and 4D Rothwell Ave in the North Harbour industrial estate.
The buildings, which sit on a 6114sqm Business 9 zoned site, are being marketed for sale by Colliers International brokers on behalf of P.F.I. Property No 4 Limited.
Last sold in 1999, the two units offer a total lettable area of 3634.6sqm. The larger of the two buildings, Unit C, comprises a 1764.3sqm warehouse, ground floor office of 580.5sqm a mezzanine floor office of 346.3sqm and a mezzanine storage area of 215.3sqm along with a 9sqm storeroom and a 27.9sqm courtyard canopy.
The smaller Unit D structure comprises a 555.1sqm main warehouse area, a mezzanine warehouse space of 51.7sqm, an office workshop of 56.1sqm and a canopy of 25.4sqm.
Colliers broker Matt Prentice says that $500,000 has been spent on upgrades and refurbishing the property over the past year.
The tenant for Units 4C and 4D is Clariant New Zealand Limited, a company that has been in the building for 10 years and has just signed for another five year term commencing September 1, 2009, paying net rental every year of $400,000 plus GST.
Prentice says that with a rent review pending the rental could potentially rise to an assessed market value of $453,510 plus GST.
Prior to moving to Rothwell Ave, Clariant spent 25 years at a Wairau Rd site.
Clariant is a leading supplier of colourant to the plastics industry, from colours in luxury goods to less-visible additives that enhance the value of industrial and consumer products.
The company is part of a global group headquartered in Muttenz near Basel, Switzerland, and represented on five continents by more than 100 companies employing around 20,000 people.
Clariant generated sales in excess of 8.1 billion Swiss francs ($11.5 billion) in 2008.
Sited on Rothwell Ave, the buildings are well positioned for the nearby Albany Highway, State Highway 18 and the wider motorway network.
Andrew Hiskens, Managing Director of Colliers' North Shore agency, says that investment yields are holding up well in the North Harbour precinct. "Yields are sitting between 7.75 per cent and 8.5 per cent for prime industrial premises and inquiry from both investors and owner occupiers remains firm."
Hiskens says Colliers has already been contacted by a number of private investors about the property "which has a strong history and a solid future with a tenant of high quality and international calibre". He says the building represents a great opportunity to get into the area and buy a securely tenanted building.
Originally a "greenfields" location. The North Harbour commercial and industrial estate was developed in the late 1990s on the western side of Auckland's Northern Motorway, between Rosedale Rd and Upper Harbour Highway.
"Development has continued consistently in this area through to now," Prentice says.
"It is popular with progressive companies due to the high standard of surrounding development, pleasant outlook, flat sites, green areas and parks, accessible amenities and excellent working environment."
The North Harbour commercial / industrial estate provides a good range of services to employees, including cafes and restaurants.
"It is considered to be one of the prime locations for both the establishment of warehousing and office type companies on Auckland's North Shore," says Prentice.
The nearest full retail centre providing good shopping and banking facilities is the rapidly growing Gateway mega-centre and the emerging Albany City development. Downtown Auckland is about 15 minutes' drive away on the Northern Motorway during off-peak hours.
The North Harbour precinct comprises 39 per cent of the industrial space on the North Shore. Vacancies had remained tight until December 2008, but research shows the vacancy rate has lifted to 5.6 per cent.
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