Foodstuffs' Auckland site offers flexibility, opportunity and proximity
Foodstuffs’ huge Auckland distribution centre is on the market for the first time in five decades, offering investors and developers an unbeatable mix of flexibility, opportunity and proximity.
Superbly located in the central Auckland suburb of Mount Roskill, the 13.12ha site at 58-60 Roma Road has abundant potential to be rezoned for a variety of uses other than the current industrial zoning.
A senior team of Colliers International specialists has been exclusively appointed to market the freehold property by way of international expressions of interest, unless sold prior.
Industrial National Director Greg Goldfinch, Site Sales Director Josh Coburn, International Sales Director Richard Kirke and Industrial Director Todd Kuzmich are inviting potential buyers to lodge their offers by 4pm NZT on Monday 27 August.
“We believe Roma Road is the most exciting commercial property investment and development opportunity to come to market in Auckland this year,” says Goldfinch.
“Sites of this scale and location very rarely come on the market. And on top of this, the site is immensely appealing to many, including industrial investors, land bankers, and residential, retirement and retail developers.”
The site is currently owned by Foodstuffs North Island Limited, which has operated its Auckland distribution centre and support office from the site since the 1960s.
The company is due to move to a new purpose-built facility at Auckland Airport in 2021, freeing up the Roma Road site for a new owner.
Goldfinch says the key to this offering is flexibility, opportunity and proximity.
“The property is offered for sale on a leaseback basis until Foodstuffs has relocated to its new premises, or by way of vacant possession with delayed settlement.
“With industrial vacancy at a critical low in Auckland, investors may wish to re-lease the site to a new tenant on a medium to long term basis, or establish a modern industrial park.
“More importantly, the property also offers abundant redevelopment opportunity. It is zoned Light Industrial, but its size, location and low site coverage make it suitable for a private plan change for higher and better use.
“Once Foodstuffs has relocated, a developer could clear the site and master-plan a new development that could include residential, retail, retirement living or a mix of these uses.
“The property also has an enviable location. Large-scale development sites within 7km of Auckland CBD are virtually impossible to find in the Auckland market these days.
“With such abundant potential, this offering will be keenly sought by a broad range of buyers.”
Coburn says the property is superbly located in the popular Auckland suburb of Mount Roskill.
“The site is surrounded by residential development, excellent transport links and amenities, including New World, The Warehouse and a mix of convenience retail.
“It is excellently located alongside State Highway 20, near the recently opened Waterview Tunnel, giving it exceptional connectivity to all areas of Auckland.
“With 380m of frontage to the motorway, the site has great exposure to some 60,000 vehicles every day.”
Coburn says Auckland is experiencing a period of unprecedented infrastructure development and investment.
“Few properties have benefited more from this than Roma Road. With the opening of SH20 and the Waterview Tunnel, the property is now only 15 minutes’ drive from the CBD and airport.
“Further infrastructure investment is set to give the property even greater appeal.
“The government’s $4 billion Auckland transport plan includes light rail to the airport via Dominion Road, with a station planned within walking distance of Roma Road.
“The East West Link, which is currently in its design phase, will provide a new link between SH20 and SH1, improving connectivity throughout central Auckland’s southern suburbs.
“Once completed, these transport links will ensure Roma Road is within easy reach of all corners of Auckland.”
Coburn says the dynamics of Auckland’s property market make Roma Road a compelling proposition.
“Auckland’s population is expected to grow at an immense pace over the next 30 years, adding another 250,000 jobs to the economy and requiring the construction of 313,000 new dwellings.
“This growth is expected to have a positive impact on Mount Roskill’s housing market, due to its central location.”
Kirke says Auckland is New Zealand’s economic and commercial powerhouse.
“It’s our fastest-growing city and the the heart of New Zealand’s technology, commercial services, and food and beverage processing sectors.
“Globally connected, Auckland offers access to the largest airport and second largest shipping port in New Zealand.
“Auckland’s economy contributes close to 40 per cent of New Zealand’s total economic output, which puts it well ahead of Wellington and Canterbury at 13 per cent each.”
Goldfinch says the property for sale comprises a substantial industrial site with a net lettable area of 36,309sq m, giving it low site coverage of 27 per cent.
“Foodstuffs developed the rural site in the early 1960s, at a time when Mount Roskill was transitioning from its agricultural roots into the mature residential and industrial suburb it is today.
“The property offers multiple potential access points and no known geotechnical barriers, providing abundant development flexibility.”
The site, spanning four titles, is irregular in shape. Its entrance is on Roma Road, while the site also abuts Allison Street, Shenandoah Avenue, Marion Avenue and the main arterial route of Richardson Road.
Goldfinch says the property slopes from a higher elevation at Richardson Road down towards SH20.
“The lower-lying area next to the motorway, comprising about 8ha, is home to Foodstuffs’ substantial building improvements.
“Very little building works have ever occurred elsewhere on the site.”
The property’s improvements comprise four interconnected buildings that were constructed at various stages since the 1960s.
There are large car parking areas and a substantial concrete sealed yard, facilitating truck access.
The 5,168sq m property at 58 Roma Road comprises a large, two-level office building with a net lettable area of 1,153sq m.
The 2,413sq m property at 59 Roma Road is currently used for car parking.
The largest property, at 60 Roma Road, comprises two titles of 123,553sq m and 154sq m each.
Three buildings, constructed in stages, offer a net lettable area of 35,156sq m, including 27,515sq m of warehousing, 7,641sq m of office space, and a 3,056sq m canopy to the northwest of the building.
The warehouses have stud heights ranging from 5.2m to 11m. The offices have recently been refurbished to a good standard, with modern open-plan spaces.
Foodstuffs North Island Limited is a wholly New Zealand owned and operated co-operative business that started in 1922.
It is the largest grocery distributor in the country, operating the well-known supermarket brands PAK'nSAVE, New World and Four Square.
The vendors propose a triple-net lease until they vacate the site in 2021.
The vendors will also consider a delayed settlement structure, subject to satisfactory deposit and vendor due diligence of the purchaser.
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