Home News 2015
Invest or occupy in sought-after Mt Wellington
A big, multi-purpose industrial property, backing on to the South Eastern Arterial in Mt Wellington, is on the market for sale to an owner-occupier or investor.
The vacant freehold property at 8-10 Bowden Rd, Auckland, features a large warehouse/manufacturing building on a significant 1.1ha land holding.
It is offered for sale through Greg Goldfinch, Andrew Hooper and Hamish West of Colliers International, with offers closing on December 2 2015, unless it is sold before that date.
“This property will be of interest to buyers looking for a large industrial property for their own use or for investment purposes in one of Auckland’s most popular industrial precincts,” says Goldfinch.
Previously home to Steel & Tube, which has moved to a new purpose-built facility, the property’s location is expected to make it keenly sought-after by a range of buyers, Hooper says.
“It’s very difficult to buy freehold properties of this size in Mt Wellington, which is one of Auckland’s preferred industrial precincts because of its central location. The property’s huge exposure to the South Eastern Arterial will undoubtedly be a big drawcard.”
The well-maintained building’s functional nature means it will suit a range of businesses, particularly manufacturers, says West. “This is a very useable industrial building with a large warehouse and an appropriately-sized office component. It would be ideal for manufacturing use by businesses requiring a large property with excellent access to the CBD.”
An investor could also add significant value to the property through redeveloping it and leasing it out, Hooper says.
“There is a trend in Mt Wellington for landlords to replace the predominant older-style manufacturing facilities with new industrial and trade retail buildings. Given the increasing property values and extremely low vacancy rates in the precinct, it can make a lot of commercial sense for owners to seek the highest and best use for their land holdings.”
The site would be ideal for a showroom given its visual profile and dual road access points, Hooper adds.
Goldfinch says the property’s size will make it attractive to buyers who are looking to secure a strategic land holding in Mt Wellington. “The high demand for industrial land in the Mt Wellington industrial area means values are expected to continue to rise. Because of this, we expect this site to be of interest to buyers who want a large, prime piece of land and a well-functioning building.”
Property and location
The 6872sq m building, constructed in the 1950s, includes a factory/warehouse 6154sq m in size, along with front and rear offices, amenities and canopy.
The four-bay warehouse providing drive-through access and gantry cranes, and the property comes with a large yard area. Some holding income is generated through a billboard, which is leased to APN Outdoor Ltd until November 2018, with a further five-year right of renewal.
The area’s Business 5 zoning permits a wide range of low to medium intensity industrial activities, with the proposed Light Industry zoning under the Proposed Auckland Unitary Plan also broad and accommodative, says Hooper.
“The property is earmarked for Light Industry zoning which permits a range of activities including light manufacturing, production, logistics, storage, transport and distribution. Large retail activities are also permitted in the zone, which is designed to enable businesses to concentrate on generating economic activity for Auckland.”
West says Mt Wellington provides industrial and trade businesses with a convenient central location between the CBD, port and international airport.
“Mt Wellington has the benefit of being roughly mid-way between Auckland CBD and Auckland Airport, both of which are around 12 kilometres away. The suburb was one of Auckland’s first industrial areas and it continues to be a fantastic home base for many of New Zealand’s most well-known and established companies.”
Mt Wellington is a very tightly-held area with a limited supply of development land, so properties that come on to the market generally get snapped up very quickly, he adds.