A large, stand alone industrial investment property, leased to a long-term tenant, in the popular Wairau Valley commercial precinct on Auckland’s North Shore has been placed on the market for the first time in over 20 years.
The 12.7ha property at 50-58 Hillside Road is being marketed by Matt Prentice and Shoneet Chand of Colliers International and is for sale by deadline private treaty closing on July 4, unless it is sold prior.
The 6,495sq m office/warehouse building was designed and built in 1972 for the tenant, Clearlite Bathrooms, which has occupied it ever since. The current lease runs until September 2019 and net annual rental income amounts to $675,248.
“With a stable, long term tenant in occupation, this property offers a secure, passive commercial investment amid Wairau Valley’s fast-growing commercial zone,” says Prentice. “We therefore expect to receive high levels of interest from investors such as syndicators, family trusts, high net worth individuals and institutions.”
Property
The substantial building, which contains factory, warehouse, mezzanine, office and showroom areas, has been upgraded and refurbished over recent years resulting in a well presented industrial facility, Prentice says. “The high stud warehouse has also been extended and now makes up a total floor area of 1340sq m, alongside the 3,730sq m main factory.”
Multiple roller doors, dual access to Hillside Road and ample yard and car parking areas are also incorporated on site. “The property overall is a very functional industrial facility, with a good warehouse to office ratio and plenty of staff amenity areas.”
Tenant
Clearlite Bathrooms is a very well established tenant, having been in business for over 65 years, Chand says. “The company started in 1946 manufacturing a Perspex and plastics range including display stands, towel rails and car tail lights from its headquarters in Ponsonby. Clearlite soon grew and won design awards as it expanded into vacuum formed polystyrene refrigerator doors.”
By the 1960s the company employed over 100 people and by the time it moved to the Wairau Valley and introduced bathroomware to its product range, it was the North Shore’s largest employer. Following the acquisition of other bathroom companies, Clearlite consolidated its focus purely on bathroom products and won various export excellence awards.
“The company remains 100% New Zealand owned and operated and occupies sites in Avondale and Christchurch in addition to its Hillside Road facility,” says Chand. “Its products are sold through many of New Zealand’s major home improvement retailers including Mitre 10, Bunnings, Placemakers, Plumbing World and ITM.”
Location
The property, which sits on an elevated site visible from the northern motorway, is centrally positioned in the popular Wairau Valley commercial precinct, Prentice says.
“The popular Wairau Valley commercial area has undergone rapid growth recently, meaning this property is in an excellent position to benefit from the continuing commercial activity in the centre of this high growth area.”
Three large retail stores – Pak n Save, Bunnings Warehouse and Mitre 10 Mega – have opened nearby within the past three years. This ‘big box’ growth explosion has led to substantial associated commercial development in the area, he says.
“Alongside the retail growth, associated industrial development has been occurring throughout the valley, which combined with the area’s proximity to the large residential catchments of Glenfield and Forest Hill means its future as a very popular commercial and retail precinct looks certain.”
A central location on Auckland’s North Shore, a 10-15 minute drive to the central business district, and in close proximity to motorway on and off-ramps further enhances the attractiveness of this investment, Chand says.
“We expect high levels of interest from potential investors in this property, owing to the compelling supply and demand trends in operation in the Wairau Valley as well as the strong tenant covenant.”
The reasons behind the high quality of tenants and tight property supply in this area are many, he adds. “Vacancy rates are low and there is considerable brownfield re-development going on in the central Wairau hub due to its proximity to a good labour supply, ample supporting industry within the locality and convenient motorway access.”
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