Freehold industrial property with long-term tenant Bathroom Direct
A strategically located warehouse and showroom investment for sale in Auckland’s sought-after East Tamaki offers an established tenant on a new long-term lease.
The 3,842sq m freehold industrial property at 5 Smales Road is being marketed for sale by Colliers International Industrial Sales and Leasing directors Paul Higgins and Jolyon Thomson.
Offers by way of deadline private treaty close at 4pm on Wednesday, 25 October 2017, unless sold prior.
Thomson says the property’s long-standing tenant, Bathroom Direct, is signed to a new five-year lease, bringing in a net annual rental return of $270,000 a year plus GST.
“This quality industrial investment is superbly located in the heart of East Tamaki, which is among the most desirable industrial areas in New Zealand,” he says.
“The property is well suited to a range of industrial uses, thanks to its sought-after Heavy Industry zoning and versatile, generic warehouse layout.
“With solid fundamentals and strong tenant covenant, this is an astute acquisition for both passive and add-value investors.”
Thomson says the property boasts excellent exposure to Smales Road – one of the main arterial routes linking Auckland’s southern and eastern suburbs.
“The location offers excellent proximity to State Highway 1 via both the East Tamaki and Manukau motorway interchanges,” he says.
“With easy access to nearby industrial areas such as Highbrook, Manukau and Mount Wellington, this is an extremely desirable location.”
Higgins says the property comprises two buildings with a net lettable are of 2,316sq m, both of which provide excellent industrial accommodation.
“The original building offers 380sq m of tidy showroom and office space at the front of the property, with 800sq m of warehouse space to the rear,” he says.
“The newer building, at the rear of the property, comprises 858sq m of warehouse space with excellent natural light. An extra 278sq m of office, accessed via the warehouse, is at the back.”
Thomson says both warehouses have stud heights of approximately 6.5m to 8m. Both offer good access via multiple roller doors.
“The buildings were constructed in 1984 and 1996 respectively, and meet modern seismic standards, with the property boasting an A-grade IEP rating of 80 per cent.”
Higgins says the lease commences upon settlement, with the five-year lease term followed by two five-year rights of renewal.
“Bathroom Direct is a long-standing bathroom supplier specialising in full-service design, creation and renovation,” he says.
“All the products its team installs have been designed and manufactured in-house, allowing Bathroom Direct to offer an unbeatable level of service and quality control.”
The general East Tamaki area is an established industrial location typified by industrial properties of various sizes, ages, quality and condition.
Smales Road’s immediate surroundings comprise a mix of small, medium and large-scale industrial premises, with the eastern end of East Tamaki expanding towards Te Irirangi Drive.
Higgins says the property’s Heavy Industry zoning under the Auckland Unitary Plan is Auckland’s heaviest industrial zoning.
“The zone, designed to enable businesses to concentrate on generating economic activity for Auckland, allows for a wide range of heavier industrial operations,” he says.
“Development of up to 20m is permitted, while greater levels of odour, dust and noise emissions are allowed than in lighter industrial zones.”
Higgins says this is a rare opportunity to acquire a Heavy Industry zoned property, as land with this zoning is tightly held and increasingly hard to find.
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