A strategic freehold industrial site with a highly desirable configuration and secure yard occupied by two national tenants is for sale in a prized location in the heart of Auckland’s East Tamaki industrial precinct.
The site of approximately 2,015sq m at 23 Ross Reid Place contains a modern, standalone building housing established tenants specialising in wholesale distribution and packaging materials.
The property is being marketed as a split-risk investment with diversified total net rental income of $159,000 plus outgoings and GST per annum, with a market assessment pointing to the potential for future rental growth.
Colliers has been exclusively appointed to market 23 Ross Reid Place, East Tamaki, Auckland, for sale by auction at 11am on Wednesday 14 April, unless it sells earlier.
Paul Higgins, Industrial Director at Colliers, says the building of some 1,191sq m sits at the southern boundary of the rectangular site, providing occupiers with secure yard and parking areas and room to drop containers.
“The building was constructed in 1992 with a functional and desirable layout incorporating a 167sq m ground-floor showroom and amenities, an upstairs office of 163sq m and a warehouse of some 861sq m, which is currently divided allowing for multiple tenancies,”
“With many well-presented, medium sized properties of this type are part of unit developments where yards are often shared, this property provides an added benefit of security for occupiers,” he says.
The majority of the building is leased to Import Distribution Limited, trading as Formula, a New Zealand-based wholesale distributer focused on imported automotive and consumer electronics goods.
The company pays net rent of $117,000 plus outgoings and GST per annum for its warehouse and office premises, on a lease that runs through to 2022 with a further three-year right of renewal.
The remainder of the warehouse is occupied by Aztec Packaging, a New Zealand owned and operated firm which manufactures and supplies plastic packaging materials to customers throughout New Zealand and offshore. Its lease, currently on a month-by-month term, generates annual net rental income of $42,000 plus outgoings and GST.
Higgins says the property’s design and layout supports the operational needs of modern industrial businesses.
“The office-warehouse ratio of 30 per cent is attractive to the majority of industrial occupiers. The upstairs office is light and airy with attractive partitioning and tidy staff amenities.
“The warehouse is of a generous stud height and benefits from having two full-height roller doors that open to a sealed and secure yard, suitable for container de-vanning.
“Easy access at the end of a quiet cul-de-sac adds to the overall appeal, permitting regular and easy vehicle and container movements.”
Ben Cockram, Industrial Associate Director at Colliers, says the building construction features concrete foundations, floors and exterior walls, a structural frame of concrete and steel, and a metal roof.
“The warehouse lends itself well to a range of logistics, racking, storage and distribution activities. There has been very low vacancy among surrounding buildings on the street, which are always in high demand if they come up for lease.
“East Tamaki is considered Auckland’s premium industrial location. Freehold, standalone properties of this size, construction and functionality in the heart of this precinct are a rare and highly sought-after find.”
Auckland’s largest industrial precinct, East Tamaki is a manufacturing and distribution hub of 2,000 businesses which generates $3 billion for the New Zealand economy each year, according to the Greater East Tamaki Business Association.
Located in an area zoned Heavy Industry under the Auckland Unitary Plan, the Ross Reid Place site sits amid a heavy concentration of industrial premises, with big-brand tenants including DHL, Higgins Contractors, Fisher & Paykel Healthcare, OfficeMax and New Zealand Post.
Josh Franklin, Industrial Director at Colliers, says the site for sale benefits from its location within a few hundred metres of key arterials Allens Road and Highbrook Drive, with quick access to the Southern Motorway via the Highbrook onramps less than 2km away.
“East Tamaki’s central location and easy access to Auckland’s CBD, Wiri and Auckland Airport continue to make it Auckland’s most desirable industrial location for tenants and investors. Recent large-scale development of the Highbrook Business Park and Eastfield Industrial Park are only increasing this area’s desirability,” says Franklin.
“Properties in this popular size bracket with a generic configuration while being standalone with exclusive yard are rarely available.
“With only a handful of tightly held opportunities in this size parcel left in East Tamaki, it means the successful purchaser will own a building that can’t be easily replicated, especially considering its proximity to Highbrook.“The strong demand for property in this area has seen vacancy rates as low as 1 per cent and the majority of land soaked up. The scarcity of land and high construction costs have led to an overwhelming shortage of sizeable properties, presenting landlords with a scenario where they often have a choice of multiple tenants when they come on the market for lease.”