Strategic 2ha industrial property on long-term lease
A substantial 2ha property in Auckland’s sought-after Onehunga industrial precinct is being offered for sale on long-term lease to Auckland Transport Corporation Limited, a wholly owned subsidiary of NZ Bus and Infratil.
Colliers International has been exclusively appointed to market the freehold property at 104-140 Neilson Street for sale by deadline private treaty closing at 4pm on Wednesday 2 May, unless sold earlier.
Industrial Sales and Leasing Director Paul Jarvie says the property has clear appeal to investors and land bankers alike.
“This is an outstanding opportunity to acquire a substantial industrial property with excellent fundamentals, sought-after Light Industry zoning and abundant future redevelopment potential,” he says.
“The property has a strong tenant covenant and is superbly located within close proximity to the mixed-use suburb of Onehunga – one of the longest-established industrial, commercial and residential areas in Auckland.
“Tenant Auckland Transport Corporation Limited (NZ Bus) is signed to a 15-year lease, with two six-year rights of renewal extending the final expiry date to 2038.
“The lease returns $757,209 plus GST in net annual rent, with locked-in rental growth from a mix of fixed annual and market rental reviews. A market rent review is due in 2019.”
Jarvie says the site’s overall built coverage of approximately only 10 per cent gives investors, developers and land bankers the option to redevelop in the long-term.
“Large industrial sites like this are becoming rarer as Onehunga continues its a mixed-use transformation,” Jarvie says.
“Located on the fringe of the suburb’s residential and commercial precincts, and just a stone’s throw from the train station and numerous bus services, this property has plenty of future potential.”
Auckland Transport Corporation Limited (NZ Bus), a wholly owned subsidiary of New Zealand and Australian Stock Exchange-listed company Infratil, currently uses the site as its Onehunga bus depot.
The property comprises a substantial 16,385sq m yard with 2,042.6sq m of improvements, including two industrial buildings and two purpose built structures.
The main building includes an 886.53sq m workshop and 727.92sq m of office space over two levels.
The offices have recently been refurbished and are very well presented, offering a mix of open plan and partitioned space as well as a large staff cafeteria and amenities.
The workshop has a stud height of about 6m and two pits. Constructed of reinforced concrete and steel cladding, it offers drive-through access via roller doors on both sides.
A 382sq m medium stud warehouse of the same construction is located behind the main building.
The two purpose built structures include a bus wash facility and a refuelling station which has a small office. These structures are both open sided and are tenant improvements.
The yard features a specialised heavy-duty polymer asphalt surface that was installed specifically to cater for heavy vehicle movements on the site.
Greg Goldfinch, Industrial National Director at Colliers International, says the location offers excellent connectivity to the motorway network and the rest of Auckland’s southeast industrial suburbs.
“The property has 160m of frontage to the northern side of Neilson Street – one of New Zealand’s busiest roads, with up to 30,000 vehicle movements a day,” he says.
“The street forms part of the main arterial route connecting the established industrial suburbs of Onehunga with Penrose and Mount Wellington.”
Goldfinch says Onehunga’s popularity is due to its ease of access to State Highway 1 and 20, its relatively short distance from the CBD, good access to Auckland International Airport via SH20.
“The completion of SH20 has significantly improved transport to the area, by linking SH1 at Manukau to Auckland International Airport, as well as West Auckland and the North Shore via the recently opened Waterview tunnel system.
“Onehunga’s accessibility – as well as its proximity to the nearby labour pools of Penrose, Mount Wellington, Ellerslie and Greenlane – makes it an industrial hot spot for tenants, owner occupiers and investors.”
NZ Bus is the largest operator of urban bus services in New Zealand, with a fleet of more than 1,000 buses and some 1,900 employees.
In Auckland, NZ Bus is the principle bus company, operating under the Metrolink, North Star and Waka Pacific brands.
The company’s 650 buses in Auckland cover more than 200 routes and carry over 35 million passengers each year.
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