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Vast industrial property on offer in sought-after Wiri

NZ_AucklandCBD_Communications_Vast industrial property on offer in soughtafter Wiri
The land and buildings of a super-sized industrial site with three established tenants in Wiri are up for sale presenting prospective purchasers with an enticing split-risk investment opportunity in one of South Auckland’s most sought-after industrial hubs.

21 Hobill Avenue, Wiri has 15,706sq m of total net lettable area and approximately 5,900sq m of yard space on 31,134sq m of land that is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan.

The site has a flat contour and drive around access providing convenience for its tenants Fruehauf NZ Limited, Fletcher Steel Limited, and Nauhria Precast Limited. The total net annual rental income for the property is $1,719,137.

Hobill Avenue, which runs off the busy Wiri Station Road, enjoys excellent access to major arterial routes, including State Highway 1 and State Highway 20, and benefits from the recent development of the Waterview Tunnel.

Colliers Directors Greg Goldfinch and Shoneet Chand have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 9 December, unless sold prior.

Fruehauf is the road-front tenant and leases a 5,775sq m double gable warehouse with a 53sq m warehouse office, a 979sq m single gable warehouse, 770sq m office, 91sq m of amenities, 328sq m of canopy, and two asphalt sealed yards totalling 2,834sq m.

They are in the midst of a 12-year lease that expires on 31 July 2027. There are two further rights of renewal for six years each. Their lease provides $956,697 in net annual rental income and includes annual increases of 2.5 per cent.

Fletcher Steel leases the 4,145sq m central warehouse, that is separated from the Fruehauf tenancy by an inter-tenancy wall, which includes a 320sq m office as part of their six-year agreement that ends on 31 July 2022. Fletchers have a 1,897sq m yard, which has recently been resealed. There are two further rights of renewal for three years each and their lease provides $442,066 in net annual rental income. There will be a market rent review on renewal.

Nauhria Precast leases the 2,733sq m rear warehouse and 512sq m of office space that includes a boardroom, kitchenette, and associated amenities, alongside a 1,170sq m yard. Their current agreement ends on 30 November 2022 with two further rights of renewal for six years each. Their lease provides $320,374 in net annual rental income and includes fixed annual increases of 2.5 per cent.

Goldfinch, National Director of Industrial at Colliers, says the highly functional property provides a steady rental stream and huge land value.

“This is a highly visible site that offers excellent usability for its occupants given the full drive around access and high stud warehouses,” Goldfinch says.

“Wiri is a sought-after industrial precinct in Auckland that is home to a number of large-scale industrial operators, including The Warehouse, Frucor, Americold, and Orora to name a few, while the site neighbours are the well-known Bluebird Foods.

“With increased roading infrastructures, including the signalisation of Kerrs Road and Druces Road, the property is well situated in the heart of Wiri and provides a unique opportunity when looking to expedite travel times on the surrounding motorway network.”

Chand, Director of Investment Sales at Colliers, says the property will hold significant appeal to a wide range of purchasers looking to secure a premier industrial asset.

“Buyers will be drawn to the strong tenant covenants on offer and, when appropriate, a review of rental rates could be considered due to the potential under-renting given the extraordinary demand for high-quality industrial sites in South Auckland,” Chand says.

“This property will generate strong interest given the sheer scale of its land and buildings, while being situated in one of Auckland’s most tightly held locations.”

The Business – Heavy Industry Zone provides for industrial activities that may produce objectionable odour, dust, and noise emissions. Air quality emissions standards that are different to the rest of Auckland will often apply. A key attribute of the zone is that it contains sites large enough to accommodate large-scale industrial activities.

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Greg Goldfinch

National Director | Industrial

Auckland South

Greg specialises in the mid to upper end of the Industrial sale and leasing markets. He joined Colliers International in 2004, coming from a policing background. He quickly established strong relationships within the industrial market and has worked exclusively for the likes of Fisher & Paykel, The Warehouse, Freedom Furniture, Fletchers, NZ Police, NZ Guardian Trust, Goodyear Dunlop NZ Ltd and Mercedes-Benz to name a few.

Greg has been the lead broker on nearly all of the largest transactions in the industrial property market over the last ten years. Greg has completed three of the largest industrial sales ever in the New Zealand market. He is a regular top 10 broker for Colliers across NZ having transacted in excess of $6billion worth of industrial real estate in his time with Colliers.

In 2013, 2019 and 2020 Greg was awarded the Commercial and Industrial Salesperson of the Year Award by the Real Estate Institute of New Zealand and was runner up in 2018. Greg was Colliers International’s top salesperson in New Zealand across all sectors in In 2010, 2013, 2017, 2018, 2019 and 2020.

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Shoneet Chand

Director

Auckland North

Shoneet has been involved in selling investment property for over 13 years and since 2015 he has been a Director in the Investment Sales Team at Colliers International, specialising in Investment & Development Sales across the wider Auckland region.

Over the past 8 years he has been one of the most successful investment sales brokers in Auckland with a track record of significant sales second to none. He has had considerable experience in dealing with international purchasers and has recently completed several deals with investors out of Asia, Europe and the Middle East. He has been involved in a number of large land sales and portfolio sales, including divestments for well-known brands like Z Energy, The Warehouse & Bunnings.

Shoneet has been the top broker in his market for both 2014 and 2015 while also placing in the top 10 brokers nationwide again for Colliers in 2016. In 2017, Shoneet transacted over $260 million of property and was ranked 2nd in New Zealand.

He was the top broker at Colliers in the 2018 financial year and a finalist for the Commercial & Industrial Salesperson of the Year award, which is judged nationwide across all agencies. In both 2019 & 2020 he was again ranked in the top 5 brokers nationwide for Colliers and was involved in over $300 million & $325 million of sales in each calendar year. 

Over the past six years, he has transacted over $1.5 Billion dollars in sales.

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