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Tightly held Penrose industrial at 92 Hugo Drive on long global lease

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A passive investment on long-term lease to global property services company Cushman & Wakefield is for sale in the high-performing Auckland suburb of Penrose.

Located on a large corner site at 92 Hugo Johnston Drive, the property benefits from excellent connectivity to surrounding industrial areas and the motorway network.

It is being marketed for sale by Colliers International Industrial Directors Andrew Hooper and Paul Higgins.

Deadline for offers close at 4pm on Tuesday 3 March, unless the property sells earlier.

“This is an exceptional opportunity to acquire a superbly located property backed by very strong tenant covenant.

“The property comprises a 1,415sq m industrial facility on a 3,181sq m freehold site.

“Constructed in the 1980s, it features a high stud 425sq m warehouse and 990sq m of modern, well-presented office space over two levels.

“Tenant Cushman & Wakefield is a long-established multinational company that employs some 51,000 people across 400 offices in 70 countries.

“Just under six years remain on the company’s 10-year lease, which currently returns $248,000 plus GST in net annual rent.

“The next rental review in December has been locked in at $260,000, providing almost immediate uplift for a new owner.

“Two more market rental reviews are due upon renewal, for terms of five years each, in 2025 and 2030.

“The strength of the property’s rental returns, location and tenant all make the property a compelling proposition.”

Higgins says the property benefits from its location within a tightly held area.

“Penrose continues to be one of the best-performing industrial locations in Auckland. It has a very low vacancy rate of around 1 per cent, and demand from tenants and investors outstrips supply.

“The suburb is an established industrial location bounded by other predominantly industrial suburbs of Mt Wellington and Onehunga.

“Its central location and proximity to key staff catchments, the CBD, Ports of Auckland, Auckland Airport, and highway and rail links continue to drive demand in the area.”

The property for sale is situated on the road front corner of Hugo Johnston Drive and Autumn Place.

It enjoys excellent access to motorways and main arterial roads, with Great South Road and the Ellerslie State Highway 1 interchange only minutes away.

Zoned Heavy Industry, the site has an asphalt-sealed yard to the west, accessed from Hugo Johnston Drive, and a metaled yard to the east, accessed from Autumn Place. There is also some landscaping.

The warehouse on the western boundary has a stud height of 6.6m at the knee rising to 7m and the apex.

It is mostly clear-span, with one single column in the centre. Access is via a single roller door on the western elevation.

A small mezzanine area is also situated 2.9m above ground along part of the western elevation, with two small storerooms below.

The offices are mostly open plan, with some partitioned rooms, and are presented to a modern, high standard.

Two entry foyers provide access at the front with an internal staircase leading to the first floor. A second staircase leads from the rear of the first level office to the warehouse.

Tenant DTZ Group New Zealand Limited, trading as Cushman & Wakefield, was formerly known as DTZ. Founded as a small family business in New York more than 100 years ago, the company delivers integrated solutions to landlords, tenants and investors.

Marketing agency Colliers International is a full-service property company that offers local expertise across every asset class, backed by global insights and networks. Its specialist Industrial team is one of the best-performing units within the Colliers business and the wider market.

Related Experts

Andrew Hooper

Director | Industrial

Auckland South

Andrew specialises in mid to upper end industrial sales and leasing projects.  He has excellent relationships within the property market and has transacted over $4b of commercial property at Colliers making him a leading broker in the New Zealand Industrial market.  His clients range from listed property funds such as PFI, Goodman, to syndicates and multinational occupiers/tenants. 

After a brush with brain cancer in early 2017, he is now fully operational and continues to be a top performer at Colliers.

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Paul Higgins

Director | Industrial

Auckland South

Paul joined Colliers in 2005 working in Auckland's industrial team specialising in the mid to upper end sales and leasing market. Paul has also spent a couple of years working for Colliers in the Central and Eastern Europe market where he was Director of Poland's Krakow office. In 2010 Paul returned to Auckland to again work in Auckland's industrial market.

View expert