Large 1.89ha freehold industrial offers split-risk with future upside
A substantial industrial complex for sale in a sought after Auckland location offers a split-risk investment with future upside.
The 1.89ha freehold property at 33 Birmingham Road, East Tamaki, is being marketed for sale by deadline private treaty through sole agents Colliers International.
Offers close at 4pm on Wednesday, 12 July, unless sold prior.
Colliers International Industrial Sales and Leasing Director Andrew Hooper is marketing the property exclusively with colleagues Dwayne Warby and Matt Prentice.
He says it offers solid rental returns of $967,565.89 per annum plus GST.
“This is an outstanding opportunity to acquire a split-risk, multi-tenanted investment in arguably one of Auckland’s most desirable industrial areas,” Hooper says.
“With a net lettable area of 11,453.8sq m plus a 1000sq m large yard, the property also offers plenty of future development potential.”
Hooper says it is extremely rare for Light Industry zoned properties of this size to come onto the open market in such a highly sought after area.
“The property is currently under-rented and given the underlying value of the land there is plenty of scope for capital gains in the future,” he says.
“We’re anticipating significant interest from investors , so we’re encouraging interested parties to act fast.”
Warby says the property offers a prominent location with a large street frontage.
“Birmingham Road is just minutes from the Highbrook Business Park, as well as State Highway 1 interchanges to both the north and south,” he says.
“The location is easily accessible from Botany and other eastern suburbs, as well as the Auckland CBD and wider region via the motorway.”
Warby says the building is dominated by 7,517.9sq m of versatile warehouse space.
“It also boasts 2406.8sq m of fully air conditioned offices, 222.9sq m of amenities, and a 151sq m common area,” he says.
The rectangular yard leads to a 960sq m enclosed canopy and 81.3sq m cart dock. The property also offers 50sq m of storage and 63.9sq m of other space.
The largest of the property’s three tenants is Malcove Distributors Limited, which occupies 7,509.6sq m.
Six years remain on Malcove’s lease, which is currently returning $627,251.89 per annum plus GST in rent.
Warby says the company has specialised in promotional logistics for more than 25 years.
“Malcove deal with the storage and distribution of marketing material, efficient campaign dispatch and smart merchandising for brands,” he says.
Furniture wholesaling company Spring Furniture Limited occupies 1,972.6sq m.
Warby says the company, established 11 years ago, has been in occupation since 2006 with just over three years remaining on its lease.
The lease is currently returning $159,430 per annum plus GST in rent.
New Hope Church, a Korean community church group, occupies the smallest tenancy, with a net lettable area of 1,348.8sq m.
The church is on a monthly lease returning $102,648 per annum plus GST in rent.
Some 622.8sq m of rental underwrite has a term of three years returning $78,236 per annum plus GST.
Prentice says the East Tamaki area is an established industrial location that is home to a number of prominent businesses.
“The introduction of Highbrook Drive motorway off-ramp and Goodman’s Highbrook Business Park have really transformed East Tamaki in recent years,” he says.
“Not only is the area more accessible; it has also increased in desirability through quality new buildings and improved amenities.”
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