Industrial purchasers eyeing up high profile sites
The offering at 7 Arwen Place, which sits one turn from Highbrook Business Park and the State Highway 1 onramps, is on an 8,829sq m site providing dual access, full drive-around capability and a very favourable parking ratio.
The property is leased to two established tenants who together pay $612,000 in net annual rent. The leases provide a long-term source of split-risk income, with regular market rental reviews until final expiry in the mid-2030s. The property also provides further rental upside with a vacant office space of some 330sq m.
Colliers International has been exclusively appointed to market 7A, B and C Arwen Place for sale by deadline private treaty. Offers close at 4pm on Wednesday 2 October, unless it is sold earlier.
Industrial Director Jolyon Thomson, who is marketing the property with colleagues Paul Higgins and Josh Franklin, says it offers excellent investment fundamentals.
“The substantial site, versatile buildings, split-risk income streams and premium location just off Kerwyn Avenue are bound to appeal to savvy industrial investors,” says Thomson.
“Features such as functional office/warehouse ratios, ample parking and the substantial yard mean an investor can feel safe in the knowledge this is an asset that will always be in high demand from tenants and purchasers.
“The added bonus is you are buying three separate titles which even further de-risks your investment.
“The units adjoin a massive sealed yard with full drive-around access and good manoeuvrability, along with abundant parking.
“The nature of the property, and the lease terms in place, make this an ideal long-term, add-value opportunity.”
The buildings comprise a total net lettable area of some 4,270sq m.
Unit A is a total of 1,486sq m. Unit B is a total of 1,528sq m and Unit C a total of 1,256sq m. Units B and C are currently occupied as one.
Higgins says the property benefits from solid local businesses as tenants.
“Unit A is leased by a trading company, which supplies wholesale goods to retailers,” he says.
“It has some 2,000 products in its catalogue, including household products, plasticware and stationery.”
This tenant is on four-year lease returning $182,000 in net annual rent, with market rental reviews every two years. One right of renewal of four years brings the final expiry to April 2027.
Units B and C are tenanted by a furniture manufacture, which designs, manufactures, imports and supplies office and kitchen furniture.
Higgins says the company was founded in 1993 and has since grown from two to 20 staff.
“The furniture company uses advanced design software and seven automated CNC machines to precision-manufacture a wide range of products.”
This tenant is on a six-year lease returning $432,000 in net annual rent, with market rental reviews every three years. Two rights of renewal of six years each bring the final expiry to March 2036.
Franklin says the property is in a premium industrial location with superb proximity to the popular Highbrook Business Park.
“The location also provides easy access to nearby industrial hubs such as Wiri, Auckland Airport and Mount Wellington.
“As a result, the East Tamaki area is occupied by many of New Zealand’s leading national and international brands.”
The immediate surrounding locality comprises a mix of small, medium and large scale industrial premises, with the eastern end of East Tamaki expanding towards Te Irirangi Drive. Tenants near the subject property include Hynds, Transpower, BMW, Courier Post, DHL, IBM and Ford.
The immediate surrounding locality comprises a mix of small, medium and large scale industrial premises, with the eastern end of East Tamaki expanding towards Te Irirangi Drive.
The strong labour pools of the eastern and southern suburbs are very close by, as is the hugely popular Botany commercial precinct.
Strong demand for property in the area has seen vacancy rates as low as 1 per cent for buildings of this nature and with the scarcity of land in East Tamaki this investment provides an opportunity to own with a safe return in one of Auckland most desirable industrial locations.