Strategic industrial on new eight-year lease
A strategic, high-profile industrial property on Auckland’s bustling Great South Road is for sale with a new eight-year lease including locked-in annual rental growth.
The 3,962sq m property at 738-742 Great South Road occupies a commanding position by the corner of Station Road in Penrose, giving it huge exposure to some 30,000 passing cars each day.
It is for sale with a new lease from settlement to established vehicle import business City Motor Group. Final expiry is 16 years from settlement including an eight-year renewal.
The bank-guaranteed lease returns $326,320 in net annual rent, with annual rent increases fixed at a 2 per cent.
The property also offers future redevelopment potential, with low site coverage of only 12 per cent allowing a new owner to make the most of the site’s huge profile.
Colliers International has been exclusively appointed to market the property for sale by auction at 11am on Wednesday 4 December, unless it is sold earlier.
Industrial Director Hamish West says it is an exceptional opportunity for investors to finish the year strongly by securing a true trophy asset.
“This property comprises a modern warehouse and office building with a substantial secured asphalt yard area and a large double-sided billboard.
“The improvements benefit from 135m of road frontage to the busy Station Road intersection, providing huge exposure in a pre-eminent location.
“The quality of the property is matched by the strength of its tenant covenant and favourable lease terms.
“The long lease is backed by a bank guarantee and boasts fixed rental growth every year, making it a very solid investment.
“With the holiday season just around the corner, this is one of the last chances in 2019 to secure a true trophy asset for your portfolio.”
Motor1, which trades as City Motor Group, was established in 2000 by directors who have been in the vehicle sales business for well over 25 years. In that time it has sold some 30,000 vehicles and purchased five properties for the business, all in the Penrose area, as well as leasing a nearby reconditioning facility with storage for 120 vehicles.
The company both imports directly from Japan and buys vehicles locally. It offers a large range of quality Japanese and European vehicles to both private and commercial consumers, as well as providing finance.
City Motor Group CEO Mark Lewis says the large site for sale holds around 140 vehicles and has a total of 16 staff.
“We acquired the site because it provided many benefits for the business – a high-profile site, high traffic flow, central Auckland location and easy access from the motorway.
“Whoever buys this very desirable property will enjoy these benefits going forward.”
Industrial Director Paul Higgins says the property is located across several titles in the heart of Penrose.
“The Penrose/Onehunga area is an economic powerhouse, generating around 18 per cent of Auckland’s GDP.
“It is Auckland’s second highest area for employment and predicted to see a big increase in heavy truck access as the Auckland economy grows.
“The property for sale is one of the most prominent in Penrose, making it extremely sought-after by high-profile operators. It is likewise desirable as a future development site.
“Access to key transport infrastructure is very good, being only 800m from the Ellerslie-Panmure motorway interchange, 400m from the Penrose Train Station, and less than 10 minutes’ drive from the State Highway 20 interchange in Onehunga.
“This provides excellent access to the airport and both the harbour and inland ports at the CBD and Wiri.”
Industrial Associate Director Ben Cockram says the Business Light Industry property has 596sq m of built improvements plus 2,700sq m of sealed yard space.
“The 368sq m warehouse is constructed of a concrete floor, clear-span steel frame, full-height precast concrete walls and long-run steel roofing. It is accessed via four roller doors and has a stud height of 5.95m rising to 6.5m.
“A 45sq m low stud workshop at the rear of the warehouse is accessed by a single roller door.
“The 77sq m ground floor office comprises an open-plan area with an adjoining smaller office, toilets and staircase to the first floor.
“The 106sq m first-floor office sits above the low stud workshop and ground floor office. It comprises an open-plan office area and several partitioned offices, together with a separate lunchroom.”
The remainder of the site is made up of asphalt sealed yard with security fencing.
The yard is in two areas, with a lower-profile small storage area to the southwestern corner of the site and the large high-profile display area to the northwestern end of the site.A large double-sided billboard is also provided to the road frontage.