A prominently placed building in the highly sought-after industrial suburb of Penrose with excellent road exposure and a strong tenant covenant presents buyers with a highly attractive purchasing opportunity.
732 Great South Road in Penrose has 1,050sq m of net lettable area on approximately 2,056sq m of land that is zoned Business – Light Industry Zone. The property also includes 20 dedicated car parks.
The strategically located building is leased by Wesfarmers Industrial and Safety NZ Limited, trading as NZ Safety Blackwoods, which is 100 per cent owned by Wesfarmers, an ASX-listed Australian retail conglomerate that had more than AUD$33 billion of revenue in the 2020-2021 financial year.
Colliers Directors Ben Cockram and Matt Prentice have been exclusively appointed to market the property for sale by auction to be held at Colliers, Level 23, HSBC Tower, 188 Quay Street, Auckland, at 11am on Wednesday 24 November, unless sold prior.
NZ Safety Blackwoods began a six-year lease on 1 August 2020, which includes two further rights of renewal for five years each providing a final expiry of 31 July 2036.
The net annual rental income from the property is $273,035 plus operating expenses and GST. The lease agreement includes fixed annual increases and market reviews on each renewal.
Cockram, Associate Director of Industrial at Colliers, says the strong tenant covenant on offer will be highly desirable among buyers looking for a secure investment with a steady rental stream.
“This property represents a premier passive investment with a high-profile tenant that is signed to a long-term lease with favourable terms,” Cockram says.
“Wesfarmers is headquartered in Perth, Western Australia and has interests predominantly in Australia and New Zealand, operating in home improvement and outdoor living, apparel and general merchandise, office supplies, and an industrials division with businesses in chemicals, energy and fertilisers, and industrial and safety products.
“From its origins in 1914 as a Western Australian farmers’ cooperative, Wesfarmers has grown into one of Australia’s largest listed companies. Wesfarmers is also one of Australia’s largest employers and has a shareholder base of approximately 484,000.”
The highly functional building underwent extensive renovations in 2019 and 2020 and offers user-friendly access from the street. The property comprises a 757sq m showroom, 168sq m storeroom, 39sq m of ground-floor office space, 70sq m of first floor office space, and 16sq m of amenities.
Primary access is provided to the building frontage via dual automatic glazed sliding doors into the front showroom space. Adjacent to the entry is the front customer serving area and behind this is a partitioned amenities space that includes customer changing rooms and office space.
To the rear of the showroom is an amenities area that provides male and female toilets, whilst to the eastern corner is the storeroom. The storeroom is partitioned from the main showroom and is accessible via a single roller door.
Prentice, Director of Sales and Leasing at Colliers, says this highly sought-after location sees nearly 30,000 vehicles travel past the site during weekday traffic.
“This building has an enviable road presence on a major arterial route with more than 45m of street frontage,” Prentice says.
“This property is less than 1km away from the Ellerslie-Panmure motorway on and off-ramps providing convenient access to State Highway 1, while the Penrose train station is only 450m away.
“Penrose is one of the most desirable industrial precincts in Auckland and offers high levels of connectivity to prominent transport routes and Auckland Airport.
“There will be huge interest in this property, and we encourage all interested parties to conduct their due diligence and contact the sole agents immediately.”