The sale of a substantial industrial property comprising three standalone buildings provides a split-risk investment opportunity with diversified income from three separate tenants and varied terms supporting future growth potential.
The property at 70-72 The Concourse is in the heart of Henderson, a well-established and highly sought-after industrial area that benefits from heavy industry zoning, accommodating for large-scale industrial activities.
Josh Coburn, General Manager of Colliers West Auckland says the property has all the fundamentals of a sound industrial investment with the added bonus of diversified income.
“On offer is three fully tenanted, standalone industrial buildings on a 7156 sqm freehold site in a well located and highly accessible area that provides solid income of some $359,000.
“The income is split between three well-established tenants resulting in a diversified income stream that not only splits the financial risk for investors but provides flexibility for future growth through varied lease terms and expiry dates.
West Auckland industrial specialist Dhiru Patel says the buildings are well-presented and offer functional industrial space for a range of uses.
“The property comprises three standalone industrial buildings totalling 3617 sqm of net lettable area with ample surrounding space that provides generous car parking and shared manoeuvring area for container dropping.
“Building one is tenanted by FillPak, one of New Zealand’s only dedicated food packing companies. The company leases some 1231 sqm of space, which they utilise to pack a wide range of dry food products into bags and pouches as well other speciality processing.
“FillPak are currently on a ten-year lease that’s returning approximately $173,600 per annum with built in rent reviews over their ten-year term. The lease includes a six-year right of renewal and a final expiry in August 2033.
“The building itself comprises a mix of offices and amenities, food preparation and packing areas with a mezzanine and a 5.5m stud warehouse at the rear.
“The second building is tenanted by Cutting Innovations Limited, a large commercial joinery company who specialise in creating innovative solutions for commercial interiors, exhibitions and set building as well as promotional and sculptural projects.
“The lease to Cutting Innovations is returning some $152,177 per annum on a three-year term with a three-year right of renewal and final expiry of 31 August 2024.
“Similar to building one, the second building is a mix of office and warehousing but has benefitted from a recent upgrade to the façade. It comprises two levels of offices at the front and a 792 sqm warehouse with roller doors and a gantry at the rear, plus a standalone storage building.
“Constructed in the late 1990s, the third building is the most modern of the three. It comprises a two-level office at the front and a good quality clear span warehouse at the rear. With a stud height of 5.25m at the knee, the functional warehouse also benefits from a large canopy off the main elevation.
“This building is tenanted by Plywood R Us Limited returning some $139,569 per annum on a three-year term that’s expiring on 31 January 2022.”
Greg Goldfinch, National Director of Industrial Sales and Leasing says Henderson has demonstrated excellent value over time that’s only set to continue.
“Henderson is a highly sought-after industrial location that provides a dynamic environment with significant commercial, retail and residential development in the area.
“Being just off Lincoln Road, The Concourse is a premium address with the least restrictive Heavy Industry zoning, and just 950m from the north western motorway onramp.
“Improvements to State Highway 16 and the opening of the Waterview Tunnel have further enhanced the location’s popularity by substantially reducing travel times.
“The CBD can be reached in less than 20 minutes during off-peak traffic, and State Highway One and the Airport are easily accessed via the tunnel.
“For occupiers, the area is well-serviced by public transport through the existing rail network and the City Rail Link in the future.
“Henderson is home to many cultural, recreational, and educational facilities which makes it an attractive destination for current and future residents and businesses.
“Nearby establishments include the Corban Estate Arts Centre, Auckland Film Studios, Westfield WestCity, Waitakere Mega Centre, West Wave Pool and Leisure Centre and Henderson High School.
“The area will continue to see growth as it has been identified as one of ten metropolitan centres in the Auckland Plan earmarked for investment by Auckland Council.
“The council’s development arm Panuku have plans to develop a number of council-owned sites that will contribute towards urban renewal over the next 30 years.”