A modern industrial property with a long lease to an established medical supplies company will appeal to investors seeking exceptional covenant from an essential services tenant.
The property at 53 Paul Matthews Road, in the tightly held North Harbour industrial precinct of Auckland’s North Shore, comprises a 1,515sq m standalone building on a 2,372sq m freehold site.
It is fully tenanted by MediRay, which distributes high-quality laboratory and medical supplies to Kiwi businesses, institutions and consumers.
Colliers International has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Tuesday 29 August, unless it is sold prior.
“Industrial property remains highly sought in the current market, as investors look to secure assets that are resilient to the economic impacts of Covid-19.
“Investors are also seeking strong tenant covenant from essential services that can continue trading at any Covid alert level.
“This superb trophy investment at 53 Paul Matthews Road offers the best of both worlds.
“The highly functional, freehold industrial property benefits from a six-year lease to a Kiwi medical supplies company returning $260,000 in net annual rent.
“The facility itself is a modern, low-maintenance building that will appeal to a variety of tenants upon final lease expiry in 2029.
“The property’s strength as an investment is underpinned by a proven location in the sought-after North Harbour industrial precinct, which has benefited from strong rental and land value growth in recent years.
“These exceptional fundamentals make for an ideal passive investment that will continue to deliver returns now and in the longer term.”
Constructed in 2000, the property comprises a warehouse to the rear and two attractive levels of office at the front, giving it a commanding road front presence.
Jimmy O’Brien, Managing Director of Colliers North Shore, says the facility offers a sought-after high warehouse ratio.
“The functional warehouse provides 806.9sq m of generic clear span space with a stud height of 6m at the knee, rising to 6.5m at the apex.
“Dual motorised roller doors on the eastern side provide vehicle access, while a separate entrance is provided for people entering on foot.
“The offices provide 477.9sq m of space, finished to a commercial standard suitable for a modern occupier. There is a great level of natural light from the entrance foyer, which extends to both office levels.
“The facility sits on a generous freehold site with Business Light Industry zoning. Plentiful car parking is available, with 23 spaces on site.”
The property is partway through a six-year lease to MediRay NZ Limited, renewable in December 2023. Two rights of renewal of three years each extend the final lease expiry to December 2029.
Rental growth is locked in with reviews every two years, to the greater of market rental or CPI.
MediRay is a New Zealand owned and operated business that specialises in distributing medical and laboratory supplies across the research, healthcare and diabetes management sectors.
Its extensive range of products includes vital Covid-19 research tools such as nucleic acid extraction kits, immunoassay kits, next-generation sequencing kits, automated testing workflows, and immune profiling and vaccine development tools.
The property for sale is positioned on the southern side of Paul Matthews Road, which is a main feeder road into the North Harbour industrial estate. The road links up with Upper Harbour Highway to the east and Bush Road to the west.
It is located some 1.6km to the Constellation Drive motorway interchange, providing access to State Highway 1 north and south, and 1.2km to Albany Highway, providing access to SH18. Auckland’s CBD is within a 25-minute drive, Takapuna is a 15-minute drive and Albany’s commercial centre is a five-minute drive.The surrounding area includes a number of modern industrial properties. The wider North Harbour industrial precinct has proven itself very popular for progressive companies due to the high standard of surrounding development, quality working environment, access to transport links and a number of affluent suburbs close by.