SH1 Warkworth property with a new lease and development upside
A high-profile property on State Highway 1 in Warkworth is for sale with a renewed lease to national tenant Carter Holt Harvey and zoning that allows for future residential development.
The 13,496sq m property at 43 Auckland Road is situated at the gateway to the rapidly expanding township of Warkworth, at the northern border of the Auckland supercity.
It is tenanted by Carters – the trade-focused building supply subsidiary of Carter Holt Harvey – on a three-year lease returning $220,564 plus GST in net annual rent.
Rental increases are fixed at 3 per cent per annum, with market reviews on renewal, providing guaranteed income growth.
The final lease expiry is in August 2028, after which a new owner can unlock the underlying land for residential development.
Carters has an existing use right, but the land itself is zoned Residential Single House under the Auckland Unitary Plan. This allows for the development of standalone suburban dwellings.
Colliers International is marketing the property for sale by deadline private treaty closing at 4pm on Thursday 6 June, unless it is sold earlier.
Site Sales Director Josh Coburn says it is an opportunity to secure an investment property with a well-known and established tenant, plus future development potential.
“Astute buyers will immediately recognise the potential of this large site, which is superbly positioned in one of Auckland’s northern growth hubs.
“Sites of this scale are difficult to find, while its location on State Highway 1 gives the property unrivalled access to the wider region’s amenities.
“Beaches and bush are located nearby while the allure of Northland is a short drive north, making this a superb location for future residential development.
“In the meantime, a new buyer can enjoy locked-in rental growth from a registered lease to a nationally recognised brand.
“With strong tenant covenant, a sensational location and future upside, you’d be hard-pressed to find a better property on the market in Warkworth right now.”
Broker Caroline Cornish says the property is a relatively flat freehold site with 317m of frontage to SH1.
“The 993.6sq m main building is predominantly built of timber, which befits the tenant’s position as the largest structural timber supplier in New Zealand.
“The main structure comprises a converted two-level Lockwood style dwelling that is attached to the front of a more recently constructed medium stud warehouse.
“Built on concrete foundations, the warehouse offers dual access via multiple roller doors.
“Other improvements include a small workshop with a large 254sq m canopy, as well as a smaller lean-to canopy and a garage.”
Cornish says Carter Holt Harvey has just renewed its lease for three years, after which two rights of renewal of three years remain.
“The tenant is one of New Zealand’s best-known companies. Formed in 1986, it was listed on the New Zealand stock exchange until 2005, when it was taken into private hands.
“The company is now owned by Rank Group Investments Limited, controlled by New Zealand’s wealthiest man, Graeme Hart.
“The company employs some 5,000 people and has annual revenue of about $2 billion. It operates four timber mills in New Zealand, two in Australia, and nine frame and truss plants.”
Broker Benson Tarm says the site has full services to the boundary and is relatively gentle in contour.
“These attributes would greatly assist with future subdivision and residential development,” he says.
“The wedge-shaped site falls from the road to the open watercourse on the eastern boundary, with a slight cross fall to the north.
“Earthworks have been undertaken to provide a gently contoured area around the main building area, together with a lower yard area through the northern, narrower portion of the site.
“Trade retail arm Carters has some 50 outlets in New Zealand selling a wide range of products targeted at builders.”
Tarm says Warkworth is a traditionally rural township about 45 minutes’ drive north of Auckland City.
“Warkworth has a village-type atmosphere, due to most of its retail and commercial buildings being only one or two storeys in height.
“This provides some character and makes it an attractive retail and service centre for the surrounding rural district and coastal residential settlements.”
Investment Sales Director Shoneet Chand says a retail and commercial development has been recently constructed immediately to the south of the property for sale.
“This provides a BP service station, a 24-hour McDonald’s, a childcare centre and various other typical retail tenants over 22 tenancies.”
A Pak’n Save supermarket has been proposed to the north of the town centre, at Hudson Road.
The Puhoi to Warkworth Motorway extension is currently in the construction phase and is estimated to be completed 2021.
Its completion will enhance the region with improved travel times to Auckland, and will help to establish Warkworth as a true regional hub for Auckland, as well as the gateway to the popular and affluent Omaha and Matakana.
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