Top-tier industrial investment on busy Neilson Street
Leading online home improvement retailer Trade Depot is selling its flagship warehouse and showroom in Auckland’s sought-after Onehunga industrial precinct.
Colliers International has been exclusively appointed to market the 9,781sq m freehold property at 306 Neilson Street – featured on colliersportfolio.nz – for sale and leaseback.
Offers by way of deadline private treaty close at 4pm on Tuesday 29 May, unless sold prior.
Andrew Hooper, Industrial Sales and Leasing Director at Colliers International, says it is a chance to acquire a top-tier industrial investment with excellent fundamentals.
“This superb offering is signed to a new 10-year, triple net lease to fast-growing e-commerce retailer Trade Depot.
“The lease returns $882,773.56 plus GST in net annual rent, with fixed annual rental increases of 2 per cent.
“Zoned Heavy Industry, the property is well located on busy Neilson Street, in the heart of the established Onehunga industrial precinct and only minutes from State Highway 1 and SH20.
“Built in 2001, the 6,302sq m warehouse, showroom and office is relatively modern and in very tidy condition.
“With its strong tenant covenant, new long-term lease, and superb location, this is an opportunity that serious investors will not want to miss.”
Hamish West of Colliers International says the Neilson Street property is situated on a rear site, away from the road, which is accessed by a shared right of way servicing three lots.
“The main 5,355sq m warehouse, split into five bays, is Trade Depot’s distribution facility,” West says.
“The warehouse is accessed via multiple roller doors and offers an 8.4m stud height at the knee, rising to 9.2m at the apex.”
West says the 775sq m office area is located at the front of the property over two levels.
“The ground floor offices are open plan, with toilets and a cafeteria located at the rear.
“The first floor offices are both open plan and partitioned, with a boardroom area and office suites.”
Paul Jarvie of Colliers International says investors can have confidence in the strong tenant covenant.
“Trade Depot has an established track record in the home improvement sector, with the company’s principals importing since 1990, selling online since 2007 and establishing Trade Depot in 2009.
“By 2013, Trade Depot had grown into a specialist online retailer with its own showroom. Since then, the company has expanded rapidly and in 2017 moved its showroom, office and warehouse into its Neilson Street premises.
“Trade Depot is now the largest online retailer in the home improvement category in New Zealand and is well placed to maintain strong growth as online shopping continues to outpace traditional retail.
“To keep up with growing demand, a second showroom, warehouse and office is due to open in Christchurch in July.”
A company statement notes Trade Depot is focussed on offering New Zealand’s most authoritative online catalogue in both value and range; strategic partnerships with leading global manufacturers; and extensive nationwide home delivery services.
Product categories include bathrooms, kitchens, plumbing, electrical and large appliances.
Hooper says the property for sale is very well located.
“Neilson Street is one of New Zealand’s busiest roads, with average daily traffic of 30,000 vehicles, including more 4,000 freight vehicles a day,” he says
“The street forms part of the main arterial route connecting Onehunga with Penrose and Mount Wellington, which are among Auckland’s most established industrial suburbs.”
Neilson Street was upgraded and widened in 2011. More recently, the street was levelled near Onehunga Mall with the removal of the old rail bridge.
“These changes have improved journey times, eased congestion and provided for more efficient freight supply chains.”
Hooper says Onehunga offers good access to both Auckland Airport and the CBD via the conveniently located motorway network.
“The completion of the nearby Southwestern Motorway (SH20) has significantly improved transport to the area,” he says.
“The motorway links up with SH1 at Manukau and SH16 via the recently opened Waterview Tunnel, creating better links south, west, north and to the airport.”
Hooper says Onehunga also offers good proximity to the nearby labour pools of Penrose, Mount Wellington, Ellerslie and Greenlane.
“Onehunga remains one of Auckland’s top industrial hot spots, and recent infrastructure improvements have made it even more desirable as a location,” he says.
“Serious investors will not want to miss this chance to secure a prime Onehunga industrial investment.”
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