A premier opportunity to secure the land and buildings on a prime corner site in the heart of Napier’s industrial hub has become available, providing massive appeal to developers, investors and owner-occupiers looking for high-quality assets with future growth potential.
The properties on offer at 31 and 35 Carnegie Road in Onekawa comprise three adjoining freehold titles and an impressive total area of 4,032sq m of prime industrial land.
The high-profile site with dual access is occupied by four tenants leasing approximately 2,511 sqm of space. The tenants currently provide net annual rental income of $193,000 plus GST. However, further rental upside is potentially on offer due to current under-renting when compared to market rents on offer across the region.
Colliers Hawke’s Bay Broker Rob Nankervis, who is marketing the properties alongside colleague Calum Ironside, notes the properties provide a variety of income across multiple tenants, which will be a key drawcard. The tenants and lease details include:
· 31 Carnegie Road, occupied by anchor tenant Taradale Production Engineering, provides total gross rental income of $165,000 plus GST per annum. The three-year term of the tenancy commenced in April 2019 with one further right of renewal for three years.
· The Nox, a well-known and popular CrossFit facility, is the other tenant at 31 Carnegie Road that leases approximately 499sq m of floor area on a monthly basis. The tenancy gross annual rental income equates to approximately $36,048 plus GST per annum.
· The neighbouring property at 35 Carnegie Road is occupied by Wedderburn Scales and a food processing business on monthly leases. Gross annual rental income of the two tenants equates to approximately $25,176 plus GST.
Ironside says industrial properties of scale like this with upside are highly sought-after in Napier.
“We expect significant interest in this property from a wide range of buyer types, including investors, owner-occupiers or developers,” Ironside says.
“The industrial sector has seen significant growth in recent years, rental rates have climbed, and vacancy rates in the Napier industrial area for sites larger than 1,000sq m are practically non-existent.
“While it will most likely be a local purchaser who ends up as the new owner, we are witnessing a larger number of buyers from outside of the region become more active in the area.
“Hawke’s Bay’s economy has performed strongly for a number of years and we are now securely on the map as an investment destination given the capital growth and attractive yield environment on offer.
“As a result, industrial investment properties are now seen as the ‘golden egg’ of available investments and are continuing to break price records month on month.”
Nankervis notes the properties’ attractiveness financially is boosted by the fact that this high-profile industrial site is located less than 300m from Taradale Road, a key link for the Hawke’s Bay Expressway.
“The property is less than five minutes from the Hawke’s Bay Airport and the Port of Napier providing massive locational benefits, making this as a must-see purchasing opportunity,” Nankervis says.
The property is for sale by tender closing on Wednesday 8 September.