A showroom and warehouse in East Tamaki, leased to national company Tile Space, is on the market for sale by auction through Colliers International.
The property, at 24a Harris Rd in a popular business precinct, is being marketed for sale by Colliers brokers Jolyon Thomson and Paul Higgins. It is scheduled to go under the hammer at 11am on December 14 at 151 Queen St, Auckland.
A new eight-year lease to Tile Space, built in rental growth and a 12 month bank guarantee make the property a “true bottom-drawer investment,” says Thomson.
“This is a very well-leased property which should be popular in the auction room. The long eight-year lease to a national tenant, strong rental growth and a bank guarantee as security will be viewed as highly desirable attributes among buyers.”
Higgins says the property’s investment fundamentals are further strengthened by its high-profile location on a busy road in a well-established commercial and industrial area.
“The Harris Rd area is very popular due to its exposure to high volumes of passing vehicles daily. It has quickly developed into a sought-after precinct that is home to a mix of showroom, trade and industrial occupiers.”
The property includes showroom, warehouse and amenity areas spread across 595sq m of floor space. Tile Space’s lease includes two further rights of renewal of four years each, with 2% annual rental growth built in.
The property returns net annual rental income of $110,940, placing it in an affordable price bracket for many individual investors looking to enter the commercial property market or expand their existing portfolios, Thomson says.
“This property’s likely price range is ideal for the many buyers who are looking for secure, long term income-generating holdings. With borrowing rates still low, it’s never been a better time to invest in commercial property and access the superior yields the asset class offers.”
The hassle-free nature of the property, with its good tenant covenant, excellent location and new lease also make it ideal investment stock for individual buyers, he adds.
“The investment characteristics on offer here are just what investors are looking for – it’s the whole package when it comes to the key fundamentals of location, tenant and lease terms.”
Tile Space is one of New Zealand’s largest tile importers. The company has been importing and selling tiles since 1987 and is now owned by Peter Roberts, who took over the business from his father in 1993.
The company is New Zealand’s most prominent distributor of porcelain, ceramic, mosaic and decorative wall tiles. It has exclusive partnerships with major tile manufacturers in Italy, Spain, Turkey, UAE, Brazil and Asia. There are 10 Tile Space stores throughout the North Island and 32 dealers nationwide.
The property has a prominent road-front position in one of South Auckland’s busiest and most intensified industrial locations, says Higgins.
“Harris Rd is one of the main arterials through East Tamaki giving great exposure for the occupiers. The Highbrook Drive motorway interchange has also improved access dramatically in the area, which is another beneficial feature of these investment opportunities.”
As one of Auckland’s most established commercial and industrial precincts, East Tamaki is very popular among industrial, retail and ancillary office occupiers, he says. Nearby occupiers include Reece Plumbing, Stihl and Dulux, among other high-profile national businesses.