A significant industrial property - with spare land for development - zoned Business 6 in Otahuhu has come to market for the first time in 30 years, presenting a number of development opportunities.
The 2.8ha property - including warehouses and office space - at 8 Manu St, Otahuhu is for sale with vacant possession through Colliers International, with offers closing 4pm, Tuesday 5 April, unless sold prior.
“Business 6-zoned land is a scarce resource that seldom comes available for purchase due to its flexible land use options, with provision for almost any activity, including heavier industrial uses,” says Colliers’ Industrial Director Andrew Hooper who, with colleagues Hamish West and Todd Kuzmich, is marketing the property.
“Owner occupiers and add-value investors are likely to be attracted to this property due to this zoning, as well as the spare land available for further development, and the location - in a landlocked precinct in the tightly-held, increasingly popular industrial suburb of Otahuhu, where vacancy rates are at all-time lows.
“Demand for Business 6-zoned land such as this is also expected to increase more as zoning changes under the Proposed Auckland Unitary Plan continue to push heavy industrial occupiers into concentrated pockets.”
The property comprises 3,140 sqm of warehouse space, a 1,035 sqm office/amenity building, 2,339 sqm of manufacturing spaces and other buildings, as well as a warehouse canopy area of 454 sqm - bringing the total net lettable floor area to 6,649 sqm, Hooper says.
“The main warehouse boasts a 6.4m stud height and would be suitable for a number of potential uses, whereas the smaller warehouse in part has a higher stud - however it quickly descends.
“The office includes both open plan areas and individual offices at the southern end.”
To the front of the property sits 1.46ha of bare land which fronts James Fletcher Dr, Hooper says.
“There are a number of potential development angles for this property, including sub-dividing or building on the bare land, as well as demolishing the current properties to construct more modern buildings.”
Another key attribute that further underpins the long term viability of this investment is the location and proximity to motorways, Kuzmich says.
“Otahuhu is one of Auckland’s oldest suburbs, and in its position on a narrow section of the Auckland Isthmus, is an important part of Auckland's southern transportation approaches for both road and rail.
“It is also considered one of the most cost-effective industrial locations in Auckland that continues to be popular for business that appreciate being close to motorways and the airport.”
These include well-known national and international brands with distribution centres in Otahuhu like Progressive Enterprises, L'Oreal, Fonterra, Supercheap Auto, Konica Minolta and USG, Kuzmich says.
“The property fronts to James Fletcher Drive and has access via Manu Street, and is located on the western side of the mail rail route and on the southern shores of the Manukau Harbour.
“Strategically centrally-located in terms of the wider Auckland area, the property has easy access to major transport links including the Southern and South-Western motorways, with the airport only ten minutes’ drive away.”
West says the completion of the Waterview Connection of State Highway 20 with SH16 will further improve regional transit from this location.
“When the Waterview project opens, there will be two motorway options from this property for connections north, south and west.”
Otahuhu has been pegged as a growth suburb overall, West says.
“Statistics New Zealand figures show a 4.9% increase in GDP per capita for the Mangere-Otahuhu area in 2015, compared to 1.7% in 2014, with population in the region projected to increase 15% from 2013 to 2023.
“Auckland Transport is investing for the region’s growth, building a new $28 million fully-integrated bus-train station at the existing Otahuhu railway station, planned to be introduced mid-2016.
“This will bring a high-quality, modern public transport facility that is aimed to provide better connected and more frequent public transport services.”