An industrial investment property occupied by a major national tenant on a long lease in the popular North Harbour business district on Auckland’s North Shore has been placed on the market for sale by auction.
8-10 Volkner Place is offered for sale in Colliers International’s latest National Portfolio magazine. It is being marketed by Matt Prentice and Jimmy O’Brien of Colliers’ North Shore office and is due to go under the hammer on June 21 at the agency’s head office at 151 Queen Street, Auckland, unless it is sold prior.
The freehold 1730sq m corner property houses a 955sq m office and warehouse building, occupied by Retail Dimension Ltd on a new eight-year lease with two further rights of renewal of two years each. Net annual rental income amounts to $149,500 a year, with built in rent reviews providing guaranteed income growth.
John Bowring, Colliers International’s national auction manager, says the strong tenant covenant, combined with the property’s location in a low-vacancy industrial area makes it an attractive investment. “With a well-established national tenant in occupation on a long term lease, this offers a secure income-generating commercial property holding in a prime industrial precinct,” he says.
Merchandising, joinery and signage manufacturer Retail Dimension Ltd employs over 70 staff around New Zealand, and occupies other factories in Wellington and Papatoetoe in addition to its North Harbour facility. The company focuses on designing and manufacturing custom retail fixtures, and has completed projects for many of the best-known brands in New Zealand including Westpac, Kathmandu, BP, Subaru NZ, New Zealand Post, Briscoe Rebel Group and Z.
Originally constructed in 2001, the property was subsequently extended and upgraded in 2003 and 2004, Prentice says. “The building now provides a mix of eight-metre high stud warehouse, ground floor office and graphics production areas and more offices on the first floor. Further recent refurbishment to the value of $80,000 plus mean the facility is immaculately presented throughout.”
Office and production spaces make up 464sq m, with 408sq m of warehouse, 83sq m of mezzanine areas and 250sq m of fenced yard space to the rear of the property. Multiple roller doors, dual street entrances and 15 on site car parks ensure convenient access, while the property further benefits from a curved road frontage and extensive street profile. Relatively low site coverage provides the potential for future expansion of the office/warehouse into the rear yard.
“Overall, the property is of attractive and modern design, as well as providing very functional industrial accommodation owing to features such as the substantial six-metre high main roller door and further roller door access to the yard,” says Prentice.
Part of the reason for the popularity of the North Harbour business district among industrial occupiers is its proximity to Auckland’s central business district and port via the Northern Motorway, O’Brien says.
“Volkner Place is only 10-15 minutes’ drive from the CBD and benefits from close proximity to motorway on and off ramps. Two major arterial thoroughfares, Bush Road and William Pickering Drive, are connected to Volkner Place making it very accessible. Bush Road connects the North Harbour business estate with Upper Harbour Highway, giving access to Albany and the motorway interchanges.”
A good local labour supply and ample supporting industry in the immediate area have also contributed to the high demand among industrial occupiers for premises in this area, O’Brien adds. “This is a tightly held and highly sought-after location which traditionally has had very low vacancy rates.”
The North Harbour business district is one of the fastest growing commercial areas in Auckland. The past 10 years have seen significant growth in the area and it will continue to be an important employment hub for the foreseeable future, Prentice says.
“North Harbour is home to some 1300 businesses and commercial organisations, which together employ more than 13,000 people.”
Other businesses in the area include Ebos, CDB Goldair, Kea Campers, Yakka, BNT and Crown, together with educational institutions such as Massey University and Unitec.
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